Novartis' Strong Innovation Supports Industry-Leading Margins

With strong positions in its core focus therapeutic areas of oncology, immunology, neuroscience, and cardiovascular, renal, and metabolic, Novartis is well positioned for steady long-term cash flows. Strong intellectual property supporting multibillion-dollar products, combined with an abundance of late-stage pipeline products, creates a wide economic moat. While patent losses on cardiology drug Entresto will weigh on near-term growth, a strong portfolio of newly launched drugs and a robust pipeline should ensure a steady long-term outlook.