Despite Pluvicto, MorphoSys Setbacks, Novartis Raises 2028 Sales Growth Outlook to 6%

Last month, it raised its 2024 earnings guidance for the third time, buoyed by wider use of its drugs, but its shares have since declined almost 9% as sales of radio-pharmaceutical Pluvicto disappointed investors, as did a write-down on German biotech company MorphoSys, which it is acquiring.

The Swiss company said Pluvicto, which contains radioactive particles to kill cancer cells, had at least $5 billion in peak sales potential, as against a "multi-billion" opportunity seen earlier.

Winning approvals for wider use of Pluvicto in prostate cancer would drive growth as many smaller treatment centres have yet to embrace the new treatment that was pioneered by large academic medical centres.

The company also said last month's $800 million impairment on MorphoSys was due to delays in the approval of its lead compound pelabresib, designed to treat a rare type of slowly progressing blood cancer.

Presentation slides on Thursday showed the drug to have "multi-billion" annual peak sales potential and would start to generate revenue before 2029.

The CEO, however, said in a call that there remained some uncertainty whether it would come to market at all, with a launch eyed in 2027 at the earliest because trial participants need longer drug-safety monitoring.