Morningstar Rating

Stock Research and Analysis

by Damien Conover, CFA

Bulls Say

Novartis' industry-leading late-stage pipeline should propel long-term growth. The company should launch several new drugs during the next few years in critical therapeutic areas such as heart failure and oncology.
Novartis operates across multiple segments, which provides greater stability in earnings compared with firms that are focused on only one business.
With a leading number of pipeline drugs designated as breakthrough therapies, Novartis' research and development in unmet medical needs should yield several new drugs with strong pricing power. Read more 

Bears Say

The recent patent loss on company's leading drug Diovan is creating a massive gap in sales, since the drug represents close to 10% of Novartis' total sales.
Increased competition could materially slow the growth rates of two of Novartis' leading drugs, Lucentis and Gilenya.
The major corporate restructuring (purchase of oncology assets from Glaxo and consumer joint venture with Glaxo) announced during the past year faces integration challenges. Read more 


We give Novartis stewardship a Standard rating, as the company has made several strong strategic acquisitions over the recent past, but most of the purchase prices bordered on the high end of the valuation range. The recent acquisition of dermatology   Read more 


Novartis develops and manufactures health-care products in four main operating segments: branded pharmaceuticals, generic pharmaceuticals, eye care products, and consumer   Read more 

Our 2014 Big Pharma Pipeline Rankings: Who Came Out on Top? 
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