Should You Buy Novartis Stock Before October 28?

This year, Novartis (NVS), a leading global healthcare firm based in Switzerland, is experiencing robust growth fueled by effective pipeline management, favorable regulatory outcomes, premium licensing agreements, shareholder returns, and positive market perceptions. The company’s stock has increased by 36.3% year-to-date, significantly surpassing overall market performance.

After the 2023 spinoff of Sandoz (SDZNY), Novartis has repositioned itself as a dedicated innovative medicines entity, concentrating on high-value therapeutic sectors.

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The announcement of Novartis’ third-quarter earnings report is set for October 28, raising questions about whether the stock is a sound investment prior to the earnings release.

By concentrating on high-value innovative medicines, Novartis is reaping the rewards. Excluding Entresto, the company’s priority brands saw a 33% increase, suggesting that its new generation of drugs is successfully driving growth. In Q2, net sales jumped 11% year-over-year, with core earnings per share climbing 24% to $2.42.

During the earnings call, CEO Vas Narasimhan highlighted the robust performance of the company’s portfolio, especially its newer oncology, neurology, and cardiovascular offerings as key contributors to its impressive quarter. The oncology medication Kisqali emerged as a standout, surging 64% and achieving total prescription leadership in metastatic breast cancer. Narasimhan indicated that the upward trend of Kisqali suggests it is poised to become a multibillion-dollar growth driver in the coming decade.

Moreover, Kesimpta, Novartis’ self-administered treatment for multiple sclerosis (MS), rose 33% this quarter. Additionally, Pluvicto for prostate cancer rebounded strongly, increasing 30% post-approval of its new pre-tax indication in the U.S. The cholesterol-lowering medication Leqvio (inclisiran) also recorded an impressive 61% growth trajectory, on pace to exceed $1 billion in annual sales.

Entresto, Novartis’ leading heart failure drug, continues its consistent growth. The company has confirmed an anticipated loss of exclusivity (LoE) by mid-2025 in the U.S., due to ongoing litigation with one generic competitor. However, it remains a substantial global revenue contributor, particularly in Europe, China, and Japan, where patent protection lasts until 2026 and beyond, suggesting ongoing significant revenue generation throughout the decade.