Novartis Needs to Make Progress on Pipeline to Justify Valuation

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Yesterday

0809 GMT - Novartis shares still trade at premium to those in European pharmaceutical peers and the Swiss company needs to make progress on its drug pipeline to justify its valuation, Berenberg says. The drugmaker released results for its highly anticipated late-stage clinical trials a few days apart, with one hitting the goals and the other two missing them, Berenberg says. "Investor expectations for all three assets were high prompting a sharp negative--but fair--share price reaction," the analysts say. The next pipeline updates from Novartis include data from a late-stage study for remibrutinib in skin condition hidradenitis suppurativa and a midstage trial for QCZ484 in hypertension by year-end, they add. Berenberg lowers its target price on Novartis to 105 Swiss francs from 120 francs. Shares rise 0.6% to 112.80 francs.

 

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