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Novartis AG NOVN

Rating as of

Morningstar’s Analysis

Valuation
Currency in CHF
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Likely Democrat Senate Control Ups Potential for New Drug Policies, but Major Changes Look Unlikely

Damien Conover, CFA Sector Director

Analyst Note

| Damien Conover, CFA |

With the Democrats being very close to winning the remaining two Senate seats in the Georgia runoffs, we expect the Biden administration will seek to implement further healthcare reforms. However, with such a slim possible majority in the Senate, we expect significant compromises that will likely lead to watered-down drug policy changes. We continue to view the biopharma group as undervalued with strong underlying fundamentals, but we expect lingering concern about drug policy changes to weigh on the industry's valuations. 

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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