Update shared on17 Sep 2025
Fair value Decreased 1.89%Novartis's future P/E multiple has materially contracted even as consensus revenue growth forecasts edged up, resulting in a marginal decrease in fair value from CHF99.36 to CHF97.49.
What's in the News
- Novartis and Argo Biopharmaceutical entered a strategic collaboration on multiple cardiovascular assets, granting Novartis ex-China licensing and P&L options on several siRNA pipeline compounds; Argo received $160M upfront, with milestones and royalties potentially totaling up to $5.2B.
- Novartis partnered with Atropos Health to leverage AI and real-world data for earlier identification and diagnosis of paroxysmal nocturnal hemoglobinuria (PNH), aiming to reduce diagnostic delays in this rare disease.
- Positive Phase III results announced for ianalumab (VAY736) in Sjogren's disease; the drug met primary endpoints, was well tolerated, and will be submitted for global regulatory approval.
- Novartis reportedly approached Avidity Biosciences for a potential acquisition to strengthen its rare disease pipeline, focusing on muscular dystrophy therapies; discussions are at an early stage with no certainty of a deal.
- The FDA approved a label update for Leqvio (inclisiran), allowing its use as monotherapy for LDL-C reduction in adults with hypercholesterolemia, supporting broader patient access and improved cholesterol management.
Valuation Changes
Summary of Valuation Changes for Novartis
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from CHF99.36 to CHF97.49.
- The Future P/E for Novartis has significantly fallen from 14.04x to 11.00x.
- The Consensus Revenue Growth forecasts for Novartis has risen slightly from 2.3% per annum to 2.4% per annum.
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