{"id":55232,"date":"2025-10-28T19:38:17","date_gmt":"2025-10-28T23:38:17","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/novartis-shares-dip-as-generics-dent-blockbuster-heart-drug-entresto\/55232\/"},"modified":"2025-10-28T19:38:17","modified_gmt":"2025-10-28T23:38:17","slug":"novartis-shares-dip-as-generics-dent-blockbuster-heart-drug-entresto","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/novartis-shares-dip-as-generics-dent-blockbuster-heart-drug-entresto\/55232\/","title":{"rendered":"Novartis Shares Dip as Generics Dent Blockbuster Heart Drug Entresto"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Novartis (<a href=\"\/stock\/NOVN\">NOVN<\/a>) shares fell over 3%<\/strong> in early trading after its top-selling heart drug, <strong>Entresto<\/strong>, saw sales growth stall in the third quarter of 2025 due to generic competition in the U.S. market.<\/li>\n<li>Sales of <strong>Entresto<\/strong> declined by <strong>1%<\/strong> year-on-year at constant currencies in Q3 to <strong>$1.88 billion<\/strong>, a significant slowdown from the <strong>22%<\/strong> growth recorded in the second quarter. U.S. sales of the drug specifically dropped <strong>13%<\/strong> to <strong>$798 million<\/strong>.<\/li>\n<li>Despite the generic headwinds, <strong>Novartis<\/strong> reported an <strong>8% increase in total Q3 revenue to $13.9 billion<\/strong>, largely offset by strong performance from newer growth drivers like <strong>Kisqali<\/strong>, <strong>Kesimpta<\/strong>, <strong>Pluvicto<\/strong>, and <strong>Scemblix<\/strong>.<\/li>\n<li>The company is actively pursuing a &quot;deal spree,&quot; including a recent <strong>$12 billion acquisition of Avidity Biosciences<\/strong>, to bolster its drug pipeline and mitigate the impact of patent expirations.<\/li>\n<\/ul>\n<p>Swiss pharmaceutical giant <strong>Novartis (<a href=\"\/stock\/NOVN\">NOVN<\/a>)<\/strong> experienced a decline in its share price following the release of its third-quarter 2025 earnings, which revealed a significant impact from generic competition on its blockbuster heart failure drug, <strong>Entresto<\/strong>. The company&#39;s shares fell more than <strong>3%<\/strong> in early Tuesday trade as investors reacted to the stalled sales growth of its former top-seller.<\/p>\n<p><strong>Entresto<\/strong> (sacubitril\/valsartan), a crucial therapy for heart failure and hypertension, saw its sales growth come to a halt in the third quarter, registering a <strong>1% decline<\/strong> year-on-year at constant currencies to <strong>$1.88 billion<\/strong>. This marks a sharp contrast to the <strong>22%<\/strong> sales increase observed in the second quarter. The erosion was particularly pronounced in the U.S. market, where <strong>Entresto&#39;s<\/strong> sales dropped <strong>13%<\/strong> to <strong>$798 million<\/strong> after <strong>MSN Pharmaceuticals<\/strong> launched the first generic version in late July.<\/p>\n<p>The launch of generic <strong>Entresto<\/strong> followed a U.S. federal judge&#39;s decision in July 2025 to deny <strong>Novartis&#39;<\/strong> request for a preliminary injunction to prevent generic versions from entering the market. This ruling emphasized the priority of public access to affordable, life-saving treatments. The company is still engaged in litigation with a generic manufacturer and the FDA to protect its intellectual property.<\/p>\n<p>Despite the challenges posed by generic erosion, <strong>Novartis&#39;<\/strong> overall third-quarter performance showed resilience. The company reported an <strong>8% rise<\/strong> in total revenue to <strong>$13.9 billion<\/strong>, primarily driven by the strong uptake of newer drugs such as breast cancer treatment <strong>Kisqali<\/strong>, multiple sclerosis drug <strong>Kesimpta<\/strong>, prostate cancer therapy <strong>Pluvicto<\/strong>, and leukemia treatment <strong>Scemblix<\/strong>. These growth drivers largely offset the negative impact of increasing generic competition, which also affected other drugs like <strong>Promacta<\/strong> (down <strong>36%<\/strong>) and <strong>Tasigna<\/strong> (down <strong>47%<\/strong>). Sales of <strong>Cosentyx<\/strong>, an inflammatory and autoimmune disease treatment, also saw a slight dip due to a one-time rebate adjustment and pricing discounts.<\/p>\n<p>In response to the looming patent cliff for key drugs, <strong>Novartis<\/strong> has been on an aggressive acquisition spree, committing up to <strong>$30 billion<\/strong> this year to bolster its drug pipeline. This includes the recent <strong>$12 billion agreement to acquire Avidity Biosciences<\/strong>, aimed at expanding its growth portfolio. The company reaffirmed its <strong>2025 guidance<\/strong>, anticipating net sales to grow by a &quot;high single-digit&quot; percentage and adjusted operating income to increase in the &quot;low-teens&quot; percentage.<\/p>\n<p>However, some analysts remain cautious. <strong>Goldman Sachs<\/strong> downgraded <strong>Novartis<\/strong> to &quot;sell&quot; in September, citing mounting risks from generic competition and stretched valuations. The brokerage estimated that <strong>Entresto&#39;s<\/strong> U.S. sales could decline by <strong>14%<\/strong> in 2025, including an <strong>80% drop<\/strong> in the fourth quarter. <em>The ongoing shift in the pharmaceutical landscape highlights the critical importance for major drugmakers to innovate and strategically acquire new assets to counteract the inevitable impact of patent expirations.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Novartis (NOVN) shares fell over 3% in early trading after its top-selling heart drug, Entresto, saw sales growth 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