Novartis Earnings: Strong Results and Pipeline Advancements Support a Fair Value Increase

Novartis reported first-quarter results ahead of our projections, and we expect to increase Novartis’ fair value estimate based on the strong performance and pipeline advancements. The solid portfolio growth and pipeline strength reaffirms Novartis’ wide moat rating. Plans to spin off the generics division Sandoz remain on track for later in the year, which will likely strengthen Novartis’ competitive position by exiting the weaker-positioned generics business.