Thursday, July 17, 2014

The Motley Fool: Forget Earnings - Catalysts Incoming for Novartis Stock

With Novartis (NYSE: NVS  ) in the midst of a business transformation process and management projecting significant improvements, investors are a little less interested in quarterly results for the time being. Results for the second quarter were OK, but sluggish growth in Pharma highlights the importance of good clinical data on LCZ696 in heart failure and progress over the next 12 months in the immuno-oncology portfolio. 

The Street is pretty bullish on these shares, though the performance on a year-to-date basis has been more middle of the road between the likes of Merck (NYSE: MRK  ) , Bristol-Myers (NYSE: BMY  ) , Pfizer, and Roche. It would seem that a lot of optimism on LCZ696 and margin improvements is getting worked into the shares and while stronger-than-expected data on LCZ696 and/or the immuno-oncology portfolio would be well-received, I think investors already expect more from Novartis than virtually any other Big Pharma company.

Read more here:
Forget Earnings: Catalysts Incoming for Novartis Stock

No comments: