How Investors May Respond To Novartis (SWX:NOVN) FDA Nod for Rhapsido and Cosentyx Discount Strategy

• Novartis recently received US FDA approval for Rhapsido (remibrutinib), the first oral Bruton's tyrosine kinase inhibitor for chronic spontaneous urticaria, and announced the launch of a US direct-to-patient platform offering Cosentyx at a 55% discount to cash-paying patients.
• These developments reflect both the company’s innovation in immune-mediated disease treatment and a move to new commercial models aimed at improving patient access and affordability.
• We'll examine how the approval of Rhapsido could influence Novartis' investment narrative and its position in immunology.

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Novartis Investment Narrative Recap

To be a Novartis shareholder, you need to believe in the company's ability to sustain growth through innovation and pipeline execution, while managing risks from generic competition and global pricing pressure. The FDA approval of Rhapsido signals further momentum in immunology, supporting near-term sentiment but does not materially alter the central short-term catalyst, which remains the continued sales performance of flagship brands amid threats to exclusivity and margins. The principal risk, loss of exclusivity on major drugs like Entresto, continues to weigh most on the business outlook.

Among recent announcements, Novartis' plan to launch a direct-to-patient platform for Cosentyx at a significant discount stands out. This move targets affordability and access, which directly addresses one of the key near-term catalysts: preserving volume and value for leading brands in competitive therapeutic categories, especially as biosimilar and pricing headwinds intensify. The initiative reflects Novartis’ efforts to adapt commercial models to sustain product momentum in core markets.

In contrast, investors should be mindful of how the uncertainty around patent protection and potential early generic entry for key therapies could...

Read the full narrative on Novartis (it's free!)

Novartis' narrative projects $59.1 billion revenue and $17.3 billion earnings by 2028. This requires 2.3% yearly revenue growth and a $3.6 billion earnings increase from $13.7 billion today.

Uncover how Novartis' forecasts yield a CHF99.08 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community estimate Novartis’ fair value ranges from CHF99 to CHF272. Their diverse outlooks highlight how the risk of accelerating generic and biosimilar competition could influence profitability over time, explore how your view may differ.

Explore 7 other fair value estimates on Novartis - why the stock might be worth 6% less than the current price!

Build Your Own Novartis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Novartis research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Novartis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Novartis' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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