Novartis (NVS) recently suffered another setback in its attempt to block the entry of a generic version of its blockbuster heart drug Entresto. On Aug 12, judge Richard Andrews of The United States District Court For The District Of DelaWare denied Novartis' motion for preliminary injunction against MSN Pharmaceuticals Inc., MSN Laboratories Private Limited and MSN Life Sciences Private Limited for the launch of a generic version of Entresto. Several generic manufacturers are looking to launch a generic ver ...

Fabhalta achieved a 44% proteinuria reduction from baseline in Phase III APPLAUSE-IgAN interim analysis, compared with 9% in placebo arm, demonstrating a clinically meaningful reduction of 38% vs. placebo (p<0.0001)1 Fabhalta is an inhibitor of the alternative complement pathway, activation of which is thought to contribute to the pathogenesis of IgAN1-4 Despite current standard of care, up to 50% of IgAN patients with persistent proteinuria progress to kidney failure within 10 to 20 years of diagnosis5-11 ...

VANCOUVER, BC, July 29, 2024 /PRNewswire/ -- USA News Group – How and what we eat is always changing. But for more and more people, the options to eat are drastically being reduced, due to rising amounts of food allergies. According to Food Allergy Research & Education (FARE), food allergy prevalence among children has been surging, up by 50% between 1997 and 2011, and up again by another 50% between 2007 and 2021. Research analysts at Spherical Insights projects strong growth in the Global Allergy Treatmen ...

Core Viewpoint - Following the Sandoz spin-off, Novartis is now focused solely on innovative medicines, leading to a significant increase in margins and a stock price rise of 14.96% since the upgrade to a buy rating in April 2024 [1][17]. Financial Performance - In Q2 2024, Novartis reported net revenues of $12.51 billion, an 11% increase year-over-year, with a 9% increase at constant rates, driven by products like Entresto, Kesimpta, Cosentyx, and Kisqali [2][3]. - The EBIT margin rose by 270 basis points to 39.6%, attributed to operating leverage from higher sales [2]. - For the first half of 2024, sales increased to $24.34 billion from $22.24 billion in H1 2023, with an operating income margin improvement of nearly 600 basis points [3]. Dividend and Shareholder Returns - Novartis increased its dividend per share, with total payouts reaching $8.6 billion, making it one of the largest dividend payers globally [1]. - The company has an ongoing buyback plan of up to $15 billion, with approximately $10.1 billion remaining to be executed [12]. Guidance and Future Outlook - Novartis has raised its guidance for core operating income growth to the mid-to-high teens, reflecting strong momentum in key growth drivers [6]. - The company expects no change in net sales but anticipates improved margins, with core operating income projected to grow from low double-digit performance [6]. Product Pipeline and Growth Drivers - Key growth drivers include the acceleration of Cosentyx in the US, with a projected peak sales of $7 billion by 2029, and supportive momentum from Leqvio and Pluvicto [7]. - The pipeline includes promising products like Kisqali and Kesimpta, both with expected peak sales of $4 billion, expiring by 2030-2031 [12]. Market Position and Valuation - Novartis reported sales and EPS that exceeded consensus estimates by 2% and 5%, respectively, indicating a potential stock price upgrade [12]. - The company's core operating margin reached 40.4%, surpassing the consensus of 38.4%, with new guidance approximately 3% higher than current consensus [12][14].

Core Viewpoint - Novartis experienced a stock decline despite strong second-quarter results, primarily due to its decision to discontinue the development of Opnurasib, a cancer treatment [2][5][9]. Financial Performance - Novartis reported second-quarter revenue of $12.5 billion, with per-share earnings of $1.97, exceeding expectations of $1.89 per share on sales of nearly $12.4 billion [8]. - The company's revenue grew by 11% year-over-year, and operating profits increased by 21% on a constant-currency basis [8]. - Full-year operating income growth projections were raised from low to mid-teens to mid to high-teens, indicating a significant positive outlook for the company [3]. Market Reaction - Following the announcement, Novartis stock fell by 4.5%, attributed to the market's focus on the company's exit from the Opnurasib development [2][6]. - The stock was considered overextended prior to the announcement, making it susceptible to a pullback regardless of the news [6]. Strategic Decisions - The decision to discontinue Opnurasib was made to concentrate on more promising drug development opportunities, despite the treatment showing reasonable performance in trials [9]. - The competitive landscape for KRAS-blocking therapies remains challenging, with several major pharmaceutical companies also pursuing similar treatments [7]. Investment Perspective - The recent dip in Novartis stock is viewed as a potential buying opportunity for investors who were hesitant to purchase shares after the stock's recent rise [10].

Novartis ADRs slid 3.5% to $107.83 as of 10:13 a.m. ET Thursday. They are up about 7% this year. Do you have a news tip for Investopedia reporters? Please email us at tips@investopedia.com Key Takeaways Novartis posted second-quarter net sales and adjusted profit that beat analysts' expectations. The drugmaker upped its full-year core operating income outlook for the second time in as many quarters. Novartis now expects fiscal 2024 core operating income to grow by a mid- to high-teen-percentage rate, up fro ...

Shares of Novartis have risen 10.7% year to date compared with the industry's growth of 23.4%. In October 2023, Novartis completed the spin-off of its generic and biosimilar unit, Sandoz, following which the latter became an independent company. The results of the Sandoz division and selected portions of corporate activities attributable to the Sandoz business are reported as discontinued operations. Cosentyx's sales (psoriasis, spondylitis and arthritis) increased 22% to $1.5 billion, which beat the Zacks ...

Fabhalta (iptacopan) Lutathera (lutetium Lu 177 dotatate) In line with our strategic focus on oncology, Novartis acquired >90% of the total share capital of MorphoSys AG, adding to our pipeline pelabresib, a late-stage investigational BET inhibitor for myelofibrosis, and tulmimetostat, an early-stage investigational dual inhibitor of EZH2 and EZH1 for solid tumors or lymphomas. Coartem (artemetherlumefantrine) Net income was USD 3.2 billion (+43%, +49% cc), mainly driven by higher operating income. EPS was ...

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