1 00:00:02,440 --> 00:00:08,639 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, Novartis, Anna coming in 2 00:00:08,640 --> 00:00:09,840 Speaker 1: with a pretty hot share of this morning. 3 00:00:09,920 --> 00:00:11,880 Speaker 2: Yeah, absolutely, the Noaceis share where it's up by four 4 00:00:11,920 --> 00:00:15,200 Speaker 2: point six percent. Is the company upgrades guidance and in 5 00:00:15,320 --> 00:00:18,080 Speaker 2: some style upgrading the sales line and the core operating 6 00:00:18,120 --> 00:00:21,040 Speaker 2: profit line. Let's talk about optimism for twenty twenty four 7 00:00:21,079 --> 00:00:24,040 Speaker 2: then with vas Narasiman, who's the Navanti CEO and joins 8 00:00:24,079 --> 00:00:26,239 Speaker 2: us right now. Avas very nice to have you on 9 00:00:26,280 --> 00:00:29,040 Speaker 2: the program as always. So you've upgraded your guidance today, 10 00:00:29,360 --> 00:00:33,239 Speaker 2: expressing some confidence, some clarity perhaps around the threat from 11 00:00:33,320 --> 00:00:37,880 Speaker 2: generic competition. Does this push challenges into twenty twenty five? 12 00:00:38,080 --> 00:00:41,120 Speaker 2: Is this what we're seeing here or are you just 13 00:00:41,240 --> 00:00:43,320 Speaker 2: broadly more positive about the outlook? 14 00:00:44,560 --> 00:00:47,159 Speaker 3: I think Anna, we're broadly more positive about the momentum 15 00:00:47,240 --> 00:00:48,640 Speaker 3: we're seeing in the business. 16 00:00:48,720 --> 00:00:48,920 Speaker 4: One. 17 00:00:48,960 --> 00:00:52,200 Speaker 3: We saw very good performance across our growth drivers, both 18 00:00:52,280 --> 00:00:56,600 Speaker 3: established medicines like Cresto and Cocentis, but very strong growth 19 00:00:56,640 --> 00:01:01,400 Speaker 3: from our recent launchers Kasimda, Kiscali, Victo, Likebo. 20 00:01:01,520 --> 00:01:04,440 Speaker 4: So when you have that broad based of medicines all. 21 00:01:04,280 --> 00:01:07,040 Speaker 3: Growing really well, it gives us confidence for this year 22 00:01:07,080 --> 00:01:08,600 Speaker 3: but also for the years to come. 23 00:01:09,000 --> 00:01:09,800 Speaker 4: In addition, we. 24 00:01:09,720 --> 00:01:13,280 Speaker 3: Saw our performance broad based from a geographical perspective, very 25 00:01:13,280 --> 00:01:18,120 Speaker 3: strong performance us Xus, Europe, China, Japan, also giving us 26 00:01:18,200 --> 00:01:20,360 Speaker 3: a lot of confidence. So while there was a small 27 00:01:20,400 --> 00:01:24,760 Speaker 3: contribution from generics getting pushed out, we're reiterating our confidence 28 00:01:24,800 --> 00:01:28,039 Speaker 3: in our five percent plus sales growth guidance out to 29 00:01:28,040 --> 00:01:31,520 Speaker 3: twenty twenty eight and our forty percent plus margin guidance 30 00:01:31,520 --> 00:01:34,840 Speaker 3: out to twenty twenty seven, along with the various guidance 31 00:01:34,920 --> 00:01:36,080 Speaker 3: raises you just mentioned. 32 00:01:36,240 --> 00:01:39,080 Speaker 2: Can I ask you about Plevicto then, as this clearly 33 00:01:39,080 --> 00:01:41,600 Speaker 2: one of the drugs accounts of drugs that you have 34 00:01:42,520 --> 00:01:45,000 Speaker 2: high hopes for, it does seem as if sales came 35 00:01:45,000 --> 00:01:47,640 Speaker 2: in perhaps just a little shy of expectations. But I 36 00:01:47,640 --> 00:01:52,200 Speaker 2: wonder if this reflects a broader concern about convincing the 37 00:01:52,240 --> 00:01:57,600 Speaker 2: market to pivot towards a new type of targeted radioactive therapy. 38 00:01:58,200 --> 00:02:01,120 Speaker 2: Are you concerned about how long it's taking to convince 39 00:02:01,160 --> 00:02:03,080 Speaker 2: the market that this is the way forward or do 40 00:02:03,120 --> 00:02:04,040 Speaker 2: you not have concerns? 41 00:02:04,040 --> 00:02:05,120 Speaker 4: There no concerns. 42 00:02:05,120 --> 00:02:07,880 Speaker 3: We feel very confident about the Plavicto outlooks. We saw 43 00:02:07,920 --> 00:02:10,520 Speaker 3: a strong quarter over quorter growth and it's important to 44 00:02:10,520 --> 00:02:13,119 Speaker 3: note we're just now coming out of a supply disruption 45 00:02:13,280 --> 00:02:15,880 Speaker 3: we had last year. Now in the first quarter we 46 00:02:15,960 --> 00:02:19,080 Speaker 3: had ninety nine point five percent on time delivery of 47 00:02:19,120 --> 00:02:22,240 Speaker 3: the medicine. We're seeing a broadened base of growth in 48 00:02:22,240 --> 00:02:25,400 Speaker 3: the United States from treating center that are getting comfortable 49 00:02:25,800 --> 00:02:28,560 Speaker 3: with this new technology. It is a very novel approach 50 00:02:28,639 --> 00:02:31,959 Speaker 3: and so oncologists need to understand they can refer patients 51 00:02:32,000 --> 00:02:35,560 Speaker 3: for this therapy radio ligen therapy for prostate cancer patients. 52 00:02:35,880 --> 00:02:37,920 Speaker 3: The other opportunity we have in the second half of 53 00:02:37,960 --> 00:02:40,280 Speaker 3: this year is this medicine will go global. We'll have 54 00:02:40,360 --> 00:02:43,880 Speaker 3: the opportunity to take Pluvicto outside of the US at scale, 55 00:02:43,919 --> 00:02:46,320 Speaker 3: and that will give us further growth. The most exciting 56 00:02:46,320 --> 00:02:49,760 Speaker 3: part of the Pluvicto story and our radio therapy story 57 00:02:49,760 --> 00:02:53,000 Speaker 3: in general, is moving into new cancers and new cancer settings. 58 00:02:53,280 --> 00:02:56,720 Speaker 3: So with Plevicto, we confirmed earlier this year that we 59 00:02:56,760 --> 00:03:01,200 Speaker 3: will file for the PSMA four setting for that allows 60 00:03:01,200 --> 00:03:03,600 Speaker 3: to broaden the indication base, and we've also done a 61 00:03:03,720 --> 00:03:06,320 Speaker 3: number of deals and have in house programs to bring 62 00:03:06,360 --> 00:03:09,360 Speaker 3: more radio line and therapy forward therapy sports. So we 63 00:03:09,360 --> 00:03:12,600 Speaker 3: think this will be a significant market opportunity for the company. 64 00:03:12,360 --> 00:03:15,720 Speaker 5: Fas good morning, it's gone so big beat and a 65 00:03:15,720 --> 00:03:18,560 Speaker 5: big raise in the market likes it. What gets you 66 00:03:18,880 --> 00:03:21,799 Speaker 5: the big beat and big rays in twenty twenty five, 67 00:03:21,880 --> 00:03:24,360 Speaker 5: What are you most excited about. What's going to deliver 68 00:03:24,840 --> 00:03:27,480 Speaker 5: the same performance that we're seeing now next year. 69 00:03:27,639 --> 00:03:28,560 Speaker 4: A couple of things, guys. 70 00:03:28,560 --> 00:03:30,720 Speaker 3: So one of these growth drivers that we have that 71 00:03:30,800 --> 00:03:33,360 Speaker 3: are really taking off with new indications, So you have 72 00:03:33,400 --> 00:03:37,480 Speaker 3: Cosentics that really outperform them a significant out performance in 73 00:03:37,600 --> 00:03:38,520 Speaker 3: quarter one, and. 74 00:03:38,480 --> 00:03:40,800 Speaker 4: That's driven off new indications for this medicine. 75 00:03:40,800 --> 00:03:42,800 Speaker 3: And this is a medicine we expect to be seven 76 00:03:42,880 --> 00:03:46,680 Speaker 3: billion dollars plus over time by the end of the decade. 77 00:03:46,920 --> 00:03:48,800 Speaker 3: The centics will give us a lot of momentum. And 78 00:03:48,840 --> 00:03:52,160 Speaker 3: then you have this group of recently launched medicines that 79 00:03:52,200 --> 00:03:54,720 Speaker 3: are going to get new indications. So you have Caskali, 80 00:03:55,160 --> 00:03:58,760 Speaker 3: you have Pluvicto, you have Semblix, you have a Taco pen. 81 00:03:59,160 --> 00:04:01,720 Speaker 3: Each one of these medicines we believe have multi billion 82 00:04:01,760 --> 00:04:05,240 Speaker 3: dollar potential. They have new indications coming over the course 83 00:04:05,280 --> 00:04:07,960 Speaker 3: of this year or early next year. That gives us 84 00:04:08,040 --> 00:04:11,200 Speaker 3: another wave of growth. And then also exciting is we 85 00:04:11,280 --> 00:04:13,880 Speaker 3: have a full pipeline. We had ten positive Phase three 86 00:04:13,920 --> 00:04:17,040 Speaker 3: readouts in twenty twenty three yep. And as those readouts 87 00:04:17,080 --> 00:04:19,360 Speaker 3: now come into submissions, that will give us a third 88 00:04:19,440 --> 00:04:20,760 Speaker 3: leg to grow through it. 89 00:04:21,000 --> 00:04:22,440 Speaker 4: It's really the end of this decade. 90 00:04:22,800 --> 00:04:24,280 Speaker 5: I can I ask you a slightly sort of left 91 00:04:24,279 --> 00:04:28,200 Speaker 5: field question this morning? Is no Avarsites still a Swiss company? 92 00:04:28,400 --> 00:04:28,479 Speaker 3: What? 93 00:04:28,600 --> 00:04:29,520 Speaker 4: Really? What? 94 00:04:29,880 --> 00:04:33,760 Speaker 5: Yeah, let's keep you on your ses. Is Navarsity still 95 00:04:33,760 --> 00:04:37,039 Speaker 5: a Swiss company? I know you're based, but you've you've 96 00:04:37,080 --> 00:04:40,400 Speaker 5: now got a what I see an Italian Swiss American 97 00:04:40,440 --> 00:04:42,560 Speaker 5: Italian chair coming in. I'm wondering how that's going to 98 00:04:42,680 --> 00:04:46,640 Speaker 5: change the culture? You reported dollars. You're domiciled in Switzerland, 99 00:04:47,040 --> 00:04:49,640 Speaker 5: but increasingly you don't feel like a Swiss company, certainly 100 00:04:49,680 --> 00:04:53,800 Speaker 5: maybe compared with Roach. Your CFO is still Swiss. How 101 00:04:53,880 --> 00:04:56,400 Speaker 5: is the culture of the company going to evolve going 102 00:04:56,440 --> 00:05:00,520 Speaker 5: forward from here? Is that Swiss heritage still how strong? 103 00:05:00,600 --> 00:05:02,920 Speaker 5: Or is it being diluted? Do you think at the moment? 104 00:05:03,320 --> 00:05:05,760 Speaker 3: You know, guy, it's interesting we have deep Swiss routes. 105 00:05:05,800 --> 00:05:08,080 Speaker 3: This is a two hundred and fifty year old company 106 00:05:08,240 --> 00:05:11,360 Speaker 3: that's roots are in Switzerland and will remain in Switzerland, 107 00:05:11,560 --> 00:05:14,000 Speaker 3: but we're also a global company. And the interesting thing 108 00:05:14,040 --> 00:05:16,840 Speaker 3: is we've been a global company for over one hundred 109 00:05:16,839 --> 00:05:20,560 Speaker 3: plus years, and so we want to maintain that global footprint, 110 00:05:20,680 --> 00:05:24,039 Speaker 3: global talent, get the best people into the best roles, 111 00:05:24,200 --> 00:05:26,520 Speaker 3: while still maintaining our Swiss roots. And I think we 112 00:05:26,560 --> 00:05:29,600 Speaker 3: strike that balance balance well. We have a few members 113 00:05:29,600 --> 00:05:33,200 Speaker 3: of our executive committee who are Swiss citizens. 114 00:05:33,279 --> 00:05:35,080 Speaker 4: I've lived in Switzerland. 115 00:05:34,520 --> 00:05:37,560 Speaker 3: For a decade plus and so I think we have 116 00:05:37,720 --> 00:05:40,360 Speaker 3: those deep Swiss routes. But it's important term of remember, 117 00:05:40,400 --> 00:05:43,359 Speaker 3: we are a global company. We compete in global markets. 118 00:05:43,839 --> 00:05:46,520 Speaker 3: For our shareholders, they want to see a world class, 119 00:05:46,600 --> 00:05:50,360 Speaker 3: global leading pharmaceutical company, and that's the balance we'll keep 120 00:05:50,360 --> 00:05:52,720 Speaker 3: working to strike. But I sit here in Basel today 121 00:05:53,440 --> 00:05:54,600 Speaker 3: and that's where we're going to stay. 122 00:05:54,960 --> 00:05:57,640 Speaker 1: Fas Is Creedy, talk to us a little bit about 123 00:05:57,880 --> 00:06:00,360 Speaker 1: the cash on your balance sheet here. There's a lot 124 00:06:00,360 --> 00:06:02,479 Speaker 1: of positivity coming from you this morning, from your share 125 00:06:02,520 --> 00:06:05,640 Speaker 1: price as well and from the analyst commentary off these results. 126 00:06:06,160 --> 00:06:08,040 Speaker 1: Talk us a little bit about where you stand on 127 00:06:08,040 --> 00:06:11,839 Speaker 1: one buybacks and two restructuring. Does that continue. 128 00:06:12,040 --> 00:06:14,159 Speaker 3: Yeah, we have a really strong cash position and we 129 00:06:14,240 --> 00:06:17,279 Speaker 3: feel really good about our frost shareholder friendly approach to 130 00:06:17,320 --> 00:06:18,200 Speaker 3: capital allocation. 131 00:06:18,279 --> 00:06:19,160 Speaker 4: We maintain of. 132 00:06:19,080 --> 00:06:21,800 Speaker 3: An approach of Bolton's and we look at really sub 133 00:06:21,839 --> 00:06:23,640 Speaker 3: five billion boltons, but if you look at most of 134 00:06:23,680 --> 00:06:25,920 Speaker 3: the deals we've done, they've been in the sub one 135 00:06:26,000 --> 00:06:28,320 Speaker 3: billion dollar space, and that's where we want to say. 136 00:06:28,720 --> 00:06:32,200 Speaker 3: We have an ongoing fifteen billion dollars share buyback that 137 00:06:32,279 --> 00:06:35,200 Speaker 3: we expect to complete over the course of next year, 138 00:06:35,520 --> 00:06:38,320 Speaker 3: and we continue to see buybacks as a critical part 139 00:06:38,440 --> 00:06:42,520 Speaker 3: of our capital allocation strategy. The strong and growing dividend 140 00:06:42,640 --> 00:06:45,800 Speaker 3: in Swiss Franks will continue, and we maintain our investments 141 00:06:45,800 --> 00:06:48,719 Speaker 3: in the business. In terms of restructuring, Now what you 142 00:06:48,839 --> 00:06:52,600 Speaker 3: see in the company is just ongoing adjustments. We completed 143 00:06:52,640 --> 00:06:56,119 Speaker 3: a major reorganization a few years ago and that's bearing fruit. 144 00:06:56,160 --> 00:06:58,880 Speaker 3: I mean, that's what you're seeing in the financial performance 145 00:06:59,080 --> 00:07:02,560 Speaker 3: and overall operating performance of Novartists. But we also recently 146 00:07:02,600 --> 00:07:06,160 Speaker 3: announced a few other adjustments in our R and D footprint, 147 00:07:06,240 --> 00:07:08,320 Speaker 3: and that's I think normal course of business will of 148 00:07:08,320 --> 00:07:11,080 Speaker 3: course always make those adjustments, but we think we're set 149 00:07:11,160 --> 00:07:12,960 Speaker 3: up in the right way now through the end of 150 00:07:12,960 --> 00:07:15,280 Speaker 3: this decade to drive the growth that we've outlined. 151 00:07:15,600 --> 00:07:18,640 Speaker 1: Talk to us about that Bolton strategy as well. Morphosis 152 00:07:18,720 --> 00:07:22,040 Speaker 1: getting a lot of attention that acquisition. How confident are 153 00:07:22,080 --> 00:07:24,440 Speaker 1: you that is going to pass kind of the regulator's 154 00:07:24,520 --> 00:07:27,120 Speaker 1: ire and if it does, how many more deals are 155 00:07:27,120 --> 00:07:27,920 Speaker 1: in the pipeline. 156 00:07:28,040 --> 00:07:30,120 Speaker 4: Yeah, we feel good about the Bolton approach. 157 00:07:30,160 --> 00:07:32,960 Speaker 3: I don't want to comment on any specific company, especially 158 00:07:32,960 --> 00:07:35,800 Speaker 3: because we're especially the Morphosis we have the tender off 159 00:07:35,840 --> 00:07:39,720 Speaker 3: for ongoing, But overall we feel very good about this 160 00:07:39,840 --> 00:07:43,120 Speaker 3: approach of bolting on. We've done over fifteen deals in 161 00:07:43,160 --> 00:07:46,800 Speaker 3: the recent quarters. I'm mostly focused in our core therapeutic 162 00:07:46,840 --> 00:07:49,400 Speaker 3: areas or our core technology are as. You saw many 163 00:07:49,440 --> 00:07:54,160 Speaker 3: deals in radio lygan therapy or RNA therapeutics, and so 164 00:07:54,240 --> 00:07:56,160 Speaker 3: we think this is the right approach to take those 165 00:07:56,200 --> 00:07:59,680 Speaker 3: bets earlier on in the development life cycle of a 166 00:07:59,760 --> 00:08:02,040 Speaker 3: drug or in a company, and then bring them into 167 00:08:02,080 --> 00:08:04,320 Speaker 3: no artists and then we do the later stage development. 168 00:08:04,360 --> 00:08:07,320 Speaker 3: We find it harder and harder to create value for 169 00:08:07,480 --> 00:08:11,040 Speaker 3: larger acquisitions where I think that the drugs are already 170 00:08:11,080 --> 00:08:13,800 Speaker 3: on the market or they're very well modeled by the street. 171 00:08:14,160 --> 00:08:16,040 Speaker 3: So that's the approach we're going to continue to take. 172 00:08:16,200 --> 00:08:18,280 Speaker 3: I think for the coming years. 173 00:08:18,280 --> 00:08:20,960 Speaker 5: What would change that would a large deal in the 174 00:08:21,040 --> 00:08:24,440 Speaker 5: space change that proving it can be done. What is 175 00:08:24,880 --> 00:08:26,560 Speaker 5: I hear what you're saying in terms of the understanding 176 00:08:26,600 --> 00:08:28,360 Speaker 5: of the science, and you beg able to model a 177 00:08:28,400 --> 00:08:31,360 Speaker 5: kount of outcomes that you're looking at. But do you 178 00:08:31,360 --> 00:08:33,360 Speaker 5: feel that the industry is being held back because of 179 00:08:33,400 --> 00:08:36,319 Speaker 5: regulators or science right now in terms of its approach 180 00:08:36,360 --> 00:08:36,920 Speaker 5: to M and A. 181 00:08:37,400 --> 00:08:39,679 Speaker 3: I think, first of on the first part of that question, 182 00:08:39,760 --> 00:08:42,240 Speaker 3: there's always this question of it does the industry need 183 00:08:42,520 --> 00:08:45,520 Speaker 3: further consolidation, And I think the biggest topic of with 184 00:08:45,600 --> 00:08:47,959 Speaker 3: respect to that is where do you really get better 185 00:08:48,160 --> 00:08:50,920 Speaker 3: R and D performance? And it's not been historically shown 186 00:08:50,960 --> 00:08:54,800 Speaker 3: that when you bring large companies together, large portfolios together, 187 00:08:54,880 --> 00:08:58,240 Speaker 3: you get better replacement power and innovation performs. Often you 188 00:08:58,280 --> 00:09:00,960 Speaker 3: have too disrupted R and D or organizations in que 189 00:09:01,080 --> 00:09:04,200 Speaker 3: disruptive pipelines. So that's been I think the difficult thing 190 00:09:04,320 --> 00:09:07,000 Speaker 3: to solve in our sector when we think about very 191 00:09:07,120 --> 00:09:09,120 Speaker 3: large M and A and when we think about more 192 00:09:09,160 --> 00:09:13,040 Speaker 3: Bolton MNA, this is primarily a science topic in my mind. 193 00:09:13,040 --> 00:09:14,560 Speaker 4: Well, we know the XBI. 194 00:09:14,320 --> 00:09:18,520 Speaker 3: Continues to hover around relative lows from where it's been 195 00:09:18,559 --> 00:09:22,280 Speaker 3: in the last decade. We still are primarily driven out 196 00:09:22,280 --> 00:09:24,640 Speaker 3: by valuation, but by the quality of the science. And 197 00:09:24,640 --> 00:09:26,920 Speaker 3: I think what we're seeing now is as capital has 198 00:09:26,960 --> 00:09:29,920 Speaker 3: flowed out of the biotech system, we see a lot 199 00:09:30,000 --> 00:09:32,640 Speaker 3: more scrutiny and a lot more pressure on biotechs to 200 00:09:32,640 --> 00:09:35,200 Speaker 3: actually have to show do they actually have strong data? 201 00:09:35,280 --> 00:09:36,920 Speaker 3: And when we look at that data, that's really what's 202 00:09:36,960 --> 00:09:39,959 Speaker 3: driving our M and A and VDNL approach. So that's 203 00:09:39,960 --> 00:09:43,000 Speaker 3: why we think the biggest opportunities are earlier stage. These 204 00:09:43,000 --> 00:09:46,040 Speaker 3: companies that are early need some support from a large 205 00:09:46,040 --> 00:09:48,840 Speaker 3: company like us that hopefully can bring these innovations forward. 206 00:09:49,240 --> 00:09:51,560 Speaker 1: All right, Fas Narasim and Novarti is the CEO. We 207 00:09:51,600 --> 00:09:54,240 Speaker 1: thank you so much for joining the program this morning.