Novartis AG raised its mid-term sales growth forecast as the Swiss drugmaker narrows its focus on innovative medicines with the highest profit potential.
Sales should increase 5% annually through 2027, the Basel-based company said Tuesday. The core operating margin should be about 40% or more by 2027.
Chief Executive Officer Vas Narasimhan said the company has completed its transformation into a streamlined and focused drugmaker.
Novartis is concentrating on four therapeutic areas including cancer and heart disease in four priority markets: the US, China, Germany and Japan.
The Swiss drugmaker spun off its Sandoz generics business earlier this year.
Shares of the company have gained 8.5% this year, more than that of crosstown rival Roche Holding AG.
Novartis’s previous mid-term sales guidance was for annual growth of 4%.
