Novartis AG
Business Model Analysis
How Novartis Makes Money
Annual Revenue: $56.7B
- How does Novartis make money?
- Novartis makes money from Cardiovascular, Renal, And Metabolic, Oncology, Immunology and Neuroscience.
Novartis generates revenue primarily through Pharmaceuticals, with roughly $56.7B in annual revenue.
Core Growth Engine: Novartis concentrates on four therapeutic areas and on the US, its largest market. It pairs internal research with bolt-on acquisitions of late-stage or platform biotechs: Chinook (2023, kidney disease), MorphoSys (2024,...
Revenue Model & Pricing
Novartis earns almost all of its revenue by selling patented prescription medicines to wholesalers, hospitals, pharmacies and national health systems in about 140 countries. FY2025 net sales of $54.5 billion came from four core areas (cardiovascular-renal-metabolic, immunology, neuroscience and oncology) plus established brands. The model depends on reinvesting roughly a fifth of sales into R&D and acquisitions so that new launches replace drugs losing exclusivity. Since the 2023 Sandoz spin-off, Novartis has no generics business; it also earns smaller "other revenues" (about $2.1 billion in 2025) from royalties and milestones.
Core Revenue Streams
Cardiovascular, Renal, And Metabolic
MajorMedicines such as Entresto and Leqvio sold through specialist and primary-care channels.
Oncology
MajorCancer medicines and radioligand therapies including Kisqali, Pluvicto, and Scemblix.
Immunology
MajorAutoimmune and inflammatory disease products, including Cosentyx.
Neuroscience
MaterialNeurology products including Kesimpta and related pipeline programs.
Established Brands And Other Medicines
ComplementaryRemaining prescription medicines sold across global markets.
Growth Strategy
Novartis concentrates on four therapeutic areas and on the US, its largest market. It pairs internal research with bolt-on acquisitions of late-stage or platform biotechs: Chinook (2023, kidney disease), MorphoSys (2024, myelofibrosis), Kate Therapeutics (2024, gene therapy capsids) and Avidity Biosciences (closed February 27, 2026, about $12 billion, neuromuscular RNA medicines). It is also expanding US manufacturing, including radioligand production capacity.
How Novartis Makes Money: FAQ
How does Novartis AG generate revenue across its core therapeutic areas?
Novartis generated FY2025 net sales of $54.5 billion from continuing operations: Oncology $16.8 billion (~31%, led by Kisqali, Tafinlar+Mekinist, Jakavi, Pluvicto, and Scemblix), Immunology $10.3 billion (~19%, led by Cosentyx, Ilaris, and Xolair), Cardiovascular-Renal-Metabolic $9.0 billion (~16%, led by Entresto and Leqvio), Neuroscience $6.0 billion (~11%, led by Kesimpta and Zolgensma), and Established Brands $12.5 billion (~23%).
What is Novartis's Radioligand Therapy (RLT) platform and how does it treat cancer?
Novartis is the global pioneer in Radioligand Therapy (RLT), which delivers precision targeted radiation directly to cancer cells while sparing healthy tissue; Novartis commercializes Pluvicto (for metastatic castration-resistant prostate cancer) and Lutathera (for neuroendocrine tumors), manufactured at specialized radiopharmaceutical production facilities in Italy, Spain, and Millburn, New Jersey.
How does Entresto generate multi-billion-dollar revenue in cardiovascular medicine?
Entresto (sacubitril/valsartan) is a first-in-class Angiotensin Receptor Neprilysin Inhibitor (ARNI) that reduces cardiovascular death and hospitalizations in patients with chronic heart failure (both reduced and preserved ejection fraction), generating $7.7 billion in FY2025 net sales despite U.S. generic entry during 2025.
What is the business model of Kesimpta in Multiple Sclerosis (MS)?
Kesimpta (ofatumumab) is a targeted B-cell therapy for relapsing forms of multiple sclerosis, formulated as a monthly at-home autoinjector pen (Sensoready), generating $4.4 billion in FY2025 net sales (up 37%) by taking market share from hospital-infused IV therapies (Ocrevus).
How does Leqvio utilize small interfering RNA (siRNA) technology to lower cholesterol?
Leqvio (inclisiran), licensed from Alnylam, is a twice-yearly siRNA injection that silences PCSK9 production in the liver and lowers LDL cholesterol by roughly half in trials. Novartis sells it through specialist and primary-care channels and population-health agreements such as its arrangement with England's NHS.
How does Novartis manage patent exclusivity and lifecycle management for blockbuster drugs?
Novartis protects its innovative therapies through strong primary and secondary patent estates, pediatric patent term extensions, new clinical indications (e.g., expanding Kisqali into early-stage breast cancer), and formulating next-generation subcutaneous and long-acting combinations.
What role does the Novartis Biomedical Research (formerly NIBR) engine play in drug discovery?
Novartis Biomedical Research is the company's discovery organization, with major hubs in Basel and Cambridge, Massachusetts. It feeds a group-wide R&D budget that runs at roughly a fifth of net sales.
How does Novartis ensure global medicine access in lower-income nations?
Novartis utilizes tiered pricing, emerging market brands, and partnerships with the Defeat-NCD Partnership and Global Fund to deliver affordable cancer and sickle cell therapies to low- and middle-income countries, reaching tens of millions of underserved patients annually.
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