- Morgan Stanley has upgraded Novartis (NVS) to overweight from equal-weight, citing a valuation pullback after the Swiss drugmaker missed on the bottom line in its Q3 results in late October as well as optimism over the upcoming launch of Rhapsido (remibrutinib) for chronic spontaneous urticaria (hives).
- The bank has upped its price target to CHF 110 from CHF 108 (~2% upside based on Wednesday's close on the SIX Swiss Exchange.
- The Q3 miss "was driven by a negative one-off on Cosentyx and faster-than-expected erosion for legacy/LOE products (Tasigna, Promacta, Taf/Mek, Xolair), while key growth drivers (Kesimpta, Pluvicto, Scemblix, Fabhalta) beat expectations," wrote analyst Thibault Boutherin.
- He expects modest 2026 sales growth of 2% followed by 5% from 2027-2029, adding he sees the company projecting a 5% CAGR from 2025-2030.
Boutherin wrote that he anticipates $5B in risk adjusted potential sales for Rhapsido assuming additional indications, adding that the launch in chronic spontaneous urticaria is likely to surpass the consensus estimate.
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