Novartis (SIX:NOVN) beat Q2 EPS but saw sales and net income pressure from a 50% Entresto decline as U.S. generics arrive; the CEO reiterated guidance while the company pours >$15B into acquisitions and ~$23B into manufacturing, eyeing H2 trial readouts and global launches.

Previous Week Recap

  • Sales Up, Core Flat: Novartis (NOVN) Q2 2026: net sales up ~1–3% y/y led by priority brands and launches; core operating income flat; net income down ~19%; free cash flow fell; guidance unchanged; shares +1.6%.
  • Entresto Slumps 50%: Novartis Q2: Entresto sales dropped 50% to $1.18B y/y due to U.S. generics. Entresto was 14% of prior-year sales; European patent protection starts expiring in November.
  • Core EPS Beat, Guidance: Novartis (NOVN) Q2 core EPS $2.41, 12% above estimates. Company reiterated full-year guidance. Traders: higher-than-expected EPS and guidance confirmation may affect short-term price and volume.
  • Acquisitions Surge, Expansion: Novartis (NOVN) spent over $15B on acquisitions year-to-date, including Avidity, Tourmaline and Synnovation, and unveiled roughly $23B in manufacturing expansion targeting radioligand therapy.
  • H2 Catalysts Previewed: Novartis will update in H2 on pivotal trials: Rhapsido (MS), a hidradenitis suppurativa program, pelacarsen (cardio risk) and del‑desiran (myotonic dystrophy). Key catalysts for NOVN ahead.
  • Plans On Track, AI: Novartis (NOVN): CEO says company sticks to plans; key drug trial readouts due H2, product launches next year, AI projects underway, managing Entresto patent expiry, Q2 profit topped forecasts.
  • Analyst Price Target, Mix: Novartis AG Sponsored ADR (NOVN): median 12‑month price target CHF 125.90, about 2.2% above last close CHF 123.10; analyst ratings mix: 12 buys, 13 holds, 3 sells.
  • 700k Sq Ft Hub: Novartis (NOVN) started building a 700,000 sq ft manufacturing hub in North Carolina this year, part of a $23 billion U.S. investment tied to domestic production and R&D.
  • China Deals Expand Pipeline: Novartis is boosting China dealmaking, licensing local R&D assets asset-by-asset to secure rights for global launches and expand its pipeline with regionally developed drugs.

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