Core Insights - Novartis AG is set to report its second-quarter 2025 results on July 17, with revenue expectations at $14.04 billion and earnings at $2.38 per share [1] - The company has a strong earnings surprise history, beating estimates in the last four quarters with an average surprise of 7.12% [1] Earnings Prediction - The Earnings ESP for Novartis is -0.28%, indicating a lower likelihood of an earnings beat this quarter [3] - The company currently holds a Zacks Rank of 2 (Buy) [3] Growth Drivers - Novartis operates in four core therapeutic areas: cardiovascular-renal-metabolic, immunology, neuroscience, and oncology following the spin-off of the Sandoz business [4] - Key products driving growth include Entresto, Kisqali, Kesimpta, Leqvio, and Scemblix, with strong sales expected in Q2 [4][8] Product Performance - Entresto's sales are estimated at $2.3 billion, benefiting from increased demand in China and Japan [5] - Kisqali's sales are projected at $1 billion, driven by its recognition in breast cancer treatment [6][7] - Kesimpta's sales are also expected to reach $1 billion, reflecting increased demand [7] - Cosentyx is anticipated to generate sales of $1.73 billion, supported by recent launches and volume growth [9] - Leqvio's sales estimates are $284 million, indicating strong growth in cholesterol management [10] - Pluvicto's sales are projected at $410 million, bolstered by FDA approval for expanded use [11] - Scemblix continues to see growth in chronic myeloid leukemia treatment, with strong demand expected [12] Recent Developments - Novartis acquired Regulus Therapeutics for $0.8 billion, adding farabursen to its pipeline, which targets autosomal dominant polycystic kidney disease [14] - Year-to-date, Novartis shares have increased by 27.3%, significantly outperforming the industry average of 1.8% [15]

Core Viewpoint - Novartis has successfully completed the acquisition of Regulus Therapeutics Inc., enhancing its pipeline for treating autosomal dominant polycystic kidney disease (ADPKD) [1][2][3] Group 1: Acquisition Details - The acquisition was finalized with Regulus becoming an indirect wholly owned subsidiary of Novartis, and its shares have ceased trading on the Nasdaq [1] - Novartis offered $7.00 in cash per share plus a contingent value right (CVR) for each share, with approximately 56.37 million shares validly tendered, representing about 74.49% of the outstanding shares [3][4] - The merger was executed without a vote from Regulus' stockholders, resulting in the cancellation of shares not tendered in the offer [4] Group 2: Clinical Development - The acquisition aims to advance the clinical development of farabursen, an investigational oligonucleotide targeting miR-17, which shows promise in treating ADPKD by reducing cyst growth and delaying disease progression [2] - The Phase 1b clinical trial for farabursen demonstrated promising efficacy and safety, impacting urinary polycystin levels and total kidney volume, which are critical measures of disease progression [2]

Basel, June 25, 2025 – Novartis today announced that its previously announced tender offer (the “Offer”) by Redwood Merger Sub Inc., a Delaware corporation and an indirect wholly owned subsidiary of Novartis (“Purchaser”), to acquire all of the outstanding shares of common stock, par value $0.001 per share (the “Shares”), of Regulus Therapeutics Inc. (“Regulus”), in exchange for (i) $7.00 in cash per share, subject to any applicable withholding and without interest thereon, plus (ii) one contingent value ri ...

Core Points - Novartis announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in relation to its tender offer to acquire Regulus Therapeutics Inc. [1][2] - The tender offer includes $7.00 in cash per share and one contingent value right (CVR) per share, which represents the right to receive an additional $7.00 upon achieving a regulatory milestone [1][2]. - The expiration of the HSR Act waiting period is a necessary condition for the completion of the merger agreement dated April 29, 2025 [2]. Tender Offer Details - The offer will expire one minute past 11:59 p.m. New York City Time on June 24, 2025, unless extended or terminated earlier [2]. - The completion of the transaction requires validly tendered shares that, along with shares owned by Novartis and its subsidiaries, represent at least one more than 50% of the total outstanding shares [2]. Additional Information - Novartis and its subsidiary filed a tender offer statement with the U.S. Securities and Exchange Commission (SEC), and Regulus filed a solicitation/recommendation statement regarding the tender offer [3]. - Investors are encouraged to read the tender offer materials and the solicitation/recommendation statement for important information before making decisions [4].

Group 1 - Novartis has reached an agreement to acquire Regulus Therapeutics for up to $1.7 billion, with an upfront payment of $800 million in cash at $7 per share [1] - Regulus shareholders will receive a contingent value right (CVR) that could provide an additional $900 million if the drug farabursen is approved for treating autosomal dominant polycystic kidney disease (ADPKD) [1] - Novartis is actively seeking acquisition opportunities to enhance sales post-2025, amid a downward trend in biotechnology company valuations [1] Group 2 - Following the acquisition announcement, Regulus Therapeutics' stock surged by 134% in pre-market trading [2] - Novartis' stock remained stable in the Swiss market, with a nearly 6% increase over the past 12 months [2] - The acquisition has been approved by both companies' boards and is expected to be completed in the second half of 2025 [2]

Core Viewpoint - Novartis has announced an agreement to acquire Regulus Therapeutics, focusing on developing microRNA therapeutics for autosomal dominant polycystic kidney disease (ADPKD) with the lead asset farabursen, which is positioned as a potential first-in-class treatment [1][2]. Transaction Details - The acquisition involves a tender offer for all outstanding shares of Regulus common stock at USD 7 per share, with an additional contingent value right (CVR) of up to USD 7 per share based on regulatory milestones [3][8]. - The transaction is expected to close in the second half of 2025, pending customary closing conditions and regulatory approvals [5][8]. Clinical Development - Farabursen is an investigational microRNA inhibitor targeting miR-17, designed to reduce cyst growth and kidney size while delaying disease progression in ADPKD [2][8]. - Regulus recently completed a Phase 1b clinical trial for farabursen, showing promising efficacy and safety results, including impacts on urinary polycystin and height-adjusted total kidney volume [2][8]. Novartis' Commitment to Renal Health - Novartis has a long-standing commitment to renal health, with recent FDA approvals for treatments addressing significant unmet needs in kidney diseases, including IgA nephropathy and C3 glomerulopathy [6].