Should You Buy Novartis Stock Before October 28?

Core Insights - Novartis is experiencing significant growth in 2023, driven by effective pipeline execution, regulatory successes, high-value licensing deals, shareholder returns, and favorable market sentiment. The stock has increased by 36.3% year-to-date, outperforming the broader market [1] Financial Performance - The company is set to report its third-quarter earnings on October 28, raising questions about whether the stock is a buy ahead of the earnings report [2] - In the second quarter, net sales rose by 11% year-over-year, with core earnings per share increasing by 24% to $2.42 [3] Strategic Focus - Novartis' strategy of concentrating on high-value, innovative medicines is yielding positive results, with priority brands seeing a 33% increase, excluding Entresto [3] - The spinoff of Sandoz has positioned Novartis as a pure-play innovative medicines firm, enhancing its focus on high-value therapeutic areas [1] Product Performance - The oncology drug Kisqali emerged as a key performer, with a 64% increase in sales and leadership in total prescriptions for metastatic breast cancer, indicating potential for multibillion-dollar growth in the next decade [4] - Kesimpta, a treatment for multiple sclerosis, grew by 33% in the quarter, while Pluvicto for prostate cancer saw a 30% increase following new U.S. approval [5] - The cholesterol-lowering drug Leqvio (inclisiran) experienced a 61% growth and is projected to exceed $1 billion in annual sales [5] Market Position - The heart failure drug Entresto continues to show steady growth, with Novartis confirming a loss of exclusivity in the U.S. by mid-2025 due to ongoing litigation with a generic competitor. The drug remains a significant revenue contributor, particularly in Europe, China, and Japan, where patent rights extend beyond 2026 [6]