Investing.com -- Novartis (LON:0QLR) AG (SIX:NOVN) has raised its annual earnings guidance for the third time, with the drugmaker noting "momentum" in its business and pipeline of medications after it reported a jump in third-quarter sales and profits.
In a call with analysts, the company also said it was carrying out early research on its own obesity drug that could be more tolerable or given at longer intervals. Anti-obesity treatments, particularly those made by Denmark's Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY) in the US, have recently surged in popularity, leading some analysts to predict that the market for these medications could exceed $100 billion by the end of the decade.
But Novartis backed its current focus on other diseases, saying they would provide sales growth into the 2030s. Chief Executive Vas Narasimhan added that the firm is "not really reliant on the obesity wave."
The comments come after strong demand for Novartis' psoriasis and arthritis drug Cosentyx helped overall third-quarter sales grow by 10% to $12.82 billion, topping consensus estimates of $12.67 billion. Core income per share of $2.06 was also above projections of $1.95.
Novartis now expects net sales in 2024 to increase in the low double-digits, up from its previous guidance for an uptick in the high-single to low double-digit range. Core operating profit is also tipped to rise in the high-teens, versus the prior outlook in the mid- to high-teens.
In a statement, Narasimhan said the group remains "highly confident" in its mid-term forecasts as well.
"We remain more bullish than [consensus] on the longer-term growth trajectory," analysts at Jefferies said in a note to clients, highlighting optimism around Novartis's Scemblix and Pluvicto cancer medications as well as its Fabhalta drug for patients with a type of kidney disease.
Shares in Novartis were lower in European trading on Tuesday.
(Reuters contributed reporting.)