Swiss pharmaceutical major Novartis has forecast a modest decline in operating profit for 2026, marking its first annual drop in a decade amid the looming impact of key drug patent expiries. The company said it expects a low single-digit percentage decline in adjusted operating profit in 2026, as competition from generic versions of several major products intensifies.

The anticipated profit decline comes as Novartis faces one of the most significant patent expiry challenges in its history, with market exclusivity lost on blockbuster medicines including the heart failure therapy Entresto and other established treatments. The loss of patent protection is expected to weigh on revenue and profitability despite broader sales growth.

Novartis reported a modest 1 percent increase in operating profit in the fourth quarter of 2025, supported by growing sales of newer oncology and specialty drugs. The company’s cancer therapies, along with treatments for multiple sclerosis and psoriasis, helped bolster recent earnings.

While near-term profit is under pressure, Novartis remains optimistic about its medium- and long-term prospects. Chief Executive Officer Vas Narasimhan emphasised the company’s confidence in navigating the patent cliff by leveraging its expanding portfolio of newer therapies and recent strategic investments. Management forecasts low single-digit group sales growth for 2026, even as generic competition erodes revenues from older products.

Novartis aims to offset near-term headwinds through its diversified pipeline and recent acquisitions, highlighting the strength of its growth brands and the company’s ability to deliver future value. Despite the softer guidance, leadership reiterated its commitment to achieving longer-term growth targets and expanding the company’s position in key therapeutic areas.