By Helena Smolak

Novartis is scheduled to report results for the first quarter on Tuesday. Here is what you need to know:

CORE OPERATING PROFIT: The Swiss pharmaceutical major is set to book $5.22 billion in core operating profit--one of its preferred metrics, which strips out exceptional items--for the first quarter, according to a poll of 13 analysts by Visible Alpha. This compares with $4.54 billion in the year-earlier period.

SALES: The group's first-quarter sales should come at $13.00 billion, according to a consensus of analysts' estimates compiled by Visible Alpha. This compares with $11.83 billion the year before.

In European afternoon trading, the stock rose 0.6% and remains up 4.3% since the start of 2025.

WHAT TO WATCH:

-- KEY DRUGS: Investors regard Novartis as a safe haven in the current market uncertainty due to high demand for psoriasis drug Cosentyx and breast-cancer treatment Kisqali, UBS analysts said in a note. The two drugs are facing price headwinds due to the current reform of the U.S. Medicare drug-pricing system, but these should be manageable, Morgan Stanley analysts said. The U.S. patent expiry of its heart drug and biggest moneymaker Entresto is expected to hold back growth from mid-2025, they said. The company has already highlighted a strong first half of the year, followed by a weaker second half due to the patent-expiry impact.

-- TARIFFS: UBS analysts expect to hear little from Novartis on tariffs until details from President Trump's policy changes targeting pharma are released. Novartis has a manufacturing footprint heavily skewed to Europe and likely retains its patent intellectual property in lower tax jurisdictions, they said.

-- OUTLOOK: The company will likely reiterate its full-year guidance, Morgan Stanley analysts said in a note.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

April 25, 2025 08:27 ET (12:27 GMT)

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