Novartis Faces Profit Drop Amid Generic Drug Competition

Novartis has projected a worse-than-expected decline in its 2026 operating profit, anticipating a low single-digit percentage decrease. This outlook is attributed to the increasing competition from more affordable generic alternatives to its established medications, notably the heart failure drug Entresto. The pharmaceutical giant is strategically shifting its focus towards cancer therapies such as Kisqali and Scemblix to counteract the impact of patent expiries.

These patent expirations affect blockbuster drugs including Entresto, the allergy treatment Xolair, and the autoimmune disease medication Cosentyx. Despite these headwinds, Novartis forecasts low single-digit gains in overall sales for 2026, excluding currency fluctuations. The company's CEO expressed optimism about achieving mid-term financial goals, emphasizing long-term growth prospects and the expected sales increase this year, even with generic competition.