Novartis AG Registered Shares

NOVN: XSWX (CHE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CHF 12.00	Nstl	Myckdpgrw

Novartis: Sandoz Spinoff Leaves a Well-Positioned Branded Drug Company

Damien Conover

Oct 4, 2023

Following the Sandoz spinoff, we are lowering our Novartis fair value estimate to $92/CHF 85 for the ADR and local shares, respectively. We are maintaining our wide moat rating for Novartis as we believe the firm remains well-positioned to develop the next generation of innovative drugs, which is the core pillar of its wide moat. The loss of the more commoditized generic business of Sandoz will not likely affect the core branded drug division.

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