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Novartis AG ADR NVS

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Stewardship

PREMIUM

Implementation of Trump's Recent Efforts to Affect Drug Pricing Seems Unlikely

Damien Conover, CFA Sector Director

Analyst Note

| Damien Conover, CFA |

President Donald Trump issued several orders on Nov. 20 designed to lower U.S. drug prices, but we don’t expect implementation of the orders due to legal challenges, lack of support from the U.S. Congress and the new Biden administration, and unclear financial impacts. As a result, we don’t expect any major impact on the U.S. pricing power of drugs, a core pillar of the moats and valuations in the drug industry.

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Company Profile

Business Description

Novartis AG develops and manufactures healthcare products through two segments: Innovative Medicines and Sandoz. It generates the vast majority of its revenue from Innovative Medicines segment consisting global business franchises in oncology, ophthalmology, neuroscience, immunology, respiratory, cardio-metabolic, and established medicines. The company sells its products globally, with the United States representing close to one third of total revenue.

Contact
Lichtstrasse 35
Basel, 4056, Switzerland
T +41 613241111
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2019
Stock Type —
Employees 103,914

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