3.38%
8.93%
3.38%
-1.63%
8.47%
21.02%
6.36%
AI Spotlight on NOVN
Company Description
Novartis AG researches, develops, manufactures, and markets healthcare products worldwide.The company operates through two segments, Innovative Medicines and Sandoz.The Innovative Medicines segment offers prescription medicines for patients and healthcare providers.
It also provides ophthalmology, neuroscience, immunology, hepatology, dermatology, respiratory, cardiovascular, renal, and metabolism medicine products.The Sandoz segment develops, manufactures, and markets finished dosage form medicines; active ingredients and finished dosage forms of small molecule pharmaceuticals to third parties; and retail generics and anti-infectives.It also provides active pharmaceutical ingredients and intermediates primarily antibiotics; protein- or other biotechnology-based products, including biosimilars; and biotechnology manufacturing services.
Novartis AG has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture, and commercialize inclisiran; and a clinical collaboration with Kura Oncology, Inc.to evaluate the combination of Tipifarnib and Alpelisib in patients with head and neck squamous cell carcinoma.The company was incorporated in 1996 and is headquartered in Basel, Switzerland.
Market Data
| Last Price | 96.97 |
| Change Percentage | 3.38% |
| Open | 95.88 |
| Previous Close | 93.8 |
| Market Cap ( Millions) | 189720 |
| Volume | 4307366 |
| Year High | 102.72 |
| Year Low | 83.63 |
| M A 50 | 90.0 |
| M A 200 | 94.52 |
Financial Ratios
| FCF Yield | 6.00% |
| Dividend Yield | 3.40% |
| ROE | 41.08% |
| Debt / Equity | 74.24% |
| Net Debt / EBIDTA | 94.12% |
| Price To Book | 4.95 |
| Price Earnings Ratio | 12.18 |
| Price To FCF | 16.67 |
| Price To sales | 4.17 |
| EV / EBITDA | 11.52 |
News
- 11:26 - Novartis Q4: Earnings Beat Estimates, CEO Dismisses Entresto Patent Expiration Worries
- 10:56 - Trending tickers: Apple, Intel, Novartis, Shell, Smiths Group
- 10:10 - Novartis: Q4 Earnings Snapshot
- 09:40 - Novartis Expects Further Profit, Sales Growth Despite Competition Threat
- 06:14 - Novartis beats Q4 earnings consensus as drug sales surge
- 06:00 - Novartis continues strong momentum of sales growth with margin expansion, reaches key innovation milestones in 2024
- 06:00 - Novartis continues strong momentum of sales growth with margin expansion, reaches key innovation milestones in 2024
- 00:00 - Chevron earnings, December PCE, FedSpeak: What to Watch
- Jan -28 - Novartis to Report Q4 Earnings: What's in the Offing?
- Jan -22 - After an obesity stumble, BioAge reconnects with its longevity pipeline
- Jan -17 - Sector Update: Health Care Stocks Rise Premarket Friday
- Jan -16 - US appeals court reinstates pause on generic version of Novartis' Entresto
- Jan -16 - Outlook Therapeutics Vision Loss Drug At Par With Novartis Drug
- Jan -16 - JPM25: The FDA’s future, AbbVie’s second thoughts and Lilly’s lesson
- Jan -16 - Novartis wins temporary pause to Entresto generic launch in US
- Jan -14 - JP Morgan 2025: Novartis streamlines its portfolio to drive future growth
- Jan -13 - Broader population could benefit from Novartis spinal muscular atrophy treatment
- Jan -13 - Novartis Entresto® US patent upheld by US Court of Appeals
- Jan -10 - AI, vaccine distrust, & the future of healthcare: Novartis CEO
- Jan -10 - Light Horse emerges with $62m and Novartis partnership worth up to $1bn
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Established Brands
Expected Growth : 2 %
What the company do ?
Established Brands from Novartis AG refers to a segment of pharmaceutical products that are mature, well-established, and widely recognized, including Voltaren, Exforge, and other brands.
Why we expect these perspectives ?
Established Brands from Novartis AG with 2% growth driven by consistent demand for chronic disease treatments, strong brand recognition, and continued investment in emerging markets. Additionally, strategic pricing, cost savings initiatives, and a diversified product portfolio contribute to sustainable growth.
Segment n°2 -> Oncology
Expected Growth : 5 %
What the company do ?
Novartis Oncology is a segment of Novartis AG that focuses on the research, development, and commercialization of innovative cancer therapies to improve patient outcomes.
Why we expect these perspectives ?
Novartis Oncology's 5% growth driven by increasing demand for Kisqali and Piqray in breast cancer, strong uptake of Kymriah in blood cancers, and growing adoption of Lutathera in neuroendocrine tumors. Additionally, pipeline advancements in CAR-T cell therapy and targeted therapies contribute to growth momentum.
Segment n°3 -> Immunology
Expected Growth : 3 %
What the company do ?
Immunology from Novartis AG refers to the research and development of treatments for immune-mediated diseases, such as psoriasis, rheumatoid arthritis, and multiple sclerosis.
Why we expect these perspectives ?
Novartis AG's Immunology segment growth is driven by increasing demand for Cosentyx, a leading treatment for psoriasis and other autoimmune diseases, as well as the launch of new products such as Kesimpta for multiple sclerosis. Strong R&D pipeline, strategic collaborations, and expanding presence in emerging markets also contribute to the segment's growth.
Segment n°4 -> Cardiovascular, Renal and Metabolic
Expected Growth : 4 %
What the company do ?
Cardiovascular, Renal and Metabolic is a Novartis AG division focused on developing treatments for heart failure, kidney disease, and metabolic disorders.
Why we expect these perspectives ?
Novartis AG's 4% growth in Cardiovascular, Renal and Metabolic segments is driven by increasing prevalence of chronic diseases, aging population, and growing demand for innovative treatments such as Entresto and sacubitril/valsartan. Additionally, strategic acquisitions, expanded indications, and geographic expansion in emerging markets contribute to growth.
Segment n°5 -> Neuroscience
Expected Growth : 1 %
What the company do ?
Novartis AG's Neuroscience segment focuses on developing treatments for neurological disorders, including Alzheimer's disease, Parkinson's disease, and multiple sclerosis.
Why we expect these perspectives ?
Novartis AG's Neuroscience segment growth is driven by increasing demand for innovative treatments in neurodegenerative diseases, such as Alzheimer's and Parkinson's, as well as growing awareness of mental health conditions. Strong R&D pipeline, strategic collaborations, and expanding presence in emerging markets also contribute to this growth.
Novartis Ag Products
| Product Range | What is it ? |
|---|---|
| Cosentyx | A prescription medicine used to treat moderate to severe plaque psoriasis, psoriatic arthritis, ankylosing spondylitis, and moderate to severe Crohn's disease. |
| Gilenya | A prescription medicine used to treat relapsing forms of multiple sclerosis (MS) in adults. |
| Tasigna | A prescription medicine used to treat certain types of leukemia, including Philadelphia chromosome-positive chronic myeloid leukemia (Ph+ CML). |
| Kisqali | A prescription medicine used to treat certain types of breast cancer, including HR+/HER2- advanced or metastatic breast cancer. |
| Entresto | A prescription medicine used to reduce the risk of cardiovascular death and hospitalization in patients with chronic heart failure (NYHA Class II-IV) and reduced ejection fraction. |
| Xolair | A prescription medicine used to treat moderate to severe asthma in people 12 years and older whose asthma is not well-controlled with inhaled corticosteroids. |
| Lucentis | A prescription medicine used to treat wet age-related macular degeneration (AMD), diabetic macular edema (DME), and diabetic retinopathy (DR). |
| Alcon Contact Lenses | A range of contact lenses designed for comfort, convenience, and clear vision. |
| Sandoz Biosimilars | A range of biosimilar medicines used to treat various conditions, including cancer, autoimmune diseases, and inflammatory diseases. |
Novartis AG's Porter Forces
Threat Of Substitutes
Novartis AG faces moderate threat from substitutes due to the presence of alternative treatments and generics in the pharmaceutical industry.
Bargaining Power Of Customers
Novartis AG has a diverse customer base, including patients, healthcare providers, and payers, which reduces the bargaining power of individual customers.
Bargaining Power Of Suppliers
Novartis AG relies on a network of suppliers for raw materials, manufacturing, and logistics, but has some bargaining power due to its large scale and diversified supply chain.
Threat Of New Entrants
The pharmaceutical industry has high barriers to entry, including significant R&D investments, regulatory hurdles, and patent protections, which limits the threat of new entrants for Novartis AG.
Intensity Of Rivalry
The pharmaceutical industry is highly competitive, with many established players, including Pfizer, Roche, and Merck, which increases the intensity of rivalry for Novartis AG.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 36.09% |
| Debt Cost | 3.95% |
| Equity Weight | 63.91% |
| Equity Cost | 6.28% |
| WACC | 5.44% |
| Leverage | 56.46% |
Novartis AG : Quality Control
Novartis AG passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| AZN.L | AstraZeneca PLC, a biopharmaceutical company, focuses on the discovery, development, manufacturing, and commercialization of prescription medicines. Its marketed products include Calquence, Enhertu, Faslodex, Imfinzi, Iressa, Koselugo, Lumoxiti, Lynparza, Orpathys, Tagrisso, … |
| SAN.PA | Sanofi, together with its subsidiaries, engages in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, and internationally. It operates through three segments: Pharmaceuticals, Vaccines, … |
| GSK.L | GSK plc, together with its subsidiaries, engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products in the United Kingdom, the … |
| ROG.SW | Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Switzerland, Germany, the United States, Austria, Netherlands, the United Kingdom, France, Belgium, and internationally. The company offers pharmaceutical products … |
| BAYN.DE | Bayer Aktiengesellschaft, together its subsidiaries, operates as a life science company worldwide. It operates through Pharmaceuticals, Consumer Health, and Crop Science segments. The Pharmaceuticals segment offers prescription products primarily for … |
Peers Metrics
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Peers Group Analysis
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AstraZeneca
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