Goldman Sachs Lowers Novartis Rating to Sell and Reduces Price Target to $118
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 12 2025
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Should l Buy NVS?
Source: Benzinga
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Analyst Views on NVS
Wall Street analysts forecast NVS stock price to fall
6 Analyst Rating
1 Buy
4 Hold
1 Sell
Hold
Current: 146.030
Low
112.00
Averages
127.75
High
143.00
Current: 146.030
Low
112.00
Averages
127.75
High
143.00
About NVS
Novartis AG is a Switzerland-based pharmaceutical company. The Company develops, manufactures, and markets branded and generic prescription drugs, active pharmaceutical ingredients (APIs), biosimilars and ophthalmic products. The Company uses science and digital technologies for treatments in the disease areas of immunology, dermatology, cancer, ophthalmology, neuroscience, respiratory, cardiovascular, renal and metabolism. The business activities of the Company are divided into two segments: Innovative Medicines, which includes innovative patent-protected prescription medicines for blood pressure, cancer and other ailments, and Sandoz, which includes generic pharmaceuticals and biosimilars.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Novartis to Close Wehr Facility by End of 2028
- Production Strategy Shift: Novartis plans to close its Wehr manufacturing site by the end of 2028, which primarily produces solid oral dosage forms, due to its lack of competitiveness, resulting in an expected reduction of around 220 jobs, marking a significant shift in the company's production strategy.
- Commitment to Transparency: Novartis emphasizes a responsible and transparent approach in communicating with employee representatives through Germany's legally required information and consultation procedures, acknowledging the uncertainty this decision creates for employees and the local community.
- Ongoing Investment Commitment: Despite the closure of the Wehr facility, Novartis reaffirms its commitment to the German market by continuing investments in research, development, and clinical studies, ensuring that the supply of medicines to patients remains unaffected.
- Investment in Innovative Manufacturing: Novartis has announced a €35 million investment in a new radioligand therapy production facility in Halle, expected to begin operations in 2027, aimed at providing personalized cancer therapies for patients in Germany, reflecting the company's strategic push towards innovative manufacturing technologies.
See More
Latest Developments in the Biotech Sector
- Regulatory Approvals: Crinetics received European Commission approval for PALSONIFY to treat acromegaly in adults, becoming the first once-daily oral therapy in Europe, covering 27 EU member states, which is expected to significantly enhance market share.
- Acquisition Expansion: Teva is acquiring Emalex Biosciences for $700 million, bolstering its neuroscience pipeline and potentially accelerating the NDA submission for Ecopipam, thereby strengthening Teva's competitive position in the CNS disorders market.
- Clinical Trial Progress: Biomea Fusion's Icovamenib showed a 52% increase in mean C-peptide AUC in its Phase 2 trial for Type 1 Diabetes, indicating potential efficacy in early-stage patients, which may drive further development efforts.
- Market Reactions: Despite multiple approvals, AstraZeneca and Novartis saw their stock prices decline by 0.79% and 1.76% respectively, reflecting a cautious investor sentiment towards the biotech sector.
See More
Novartis Projects 8% Sales Growth for 2025 Amid Patent Challenges
- Sales Growth Projection: Novartis anticipates an 8% sales growth for 2025 despite facing historic patent cliffs, indicating confidence in its new product development and market expansion strategies, which may attract investor interest in its long-term growth potential.
- Patent Challenges: The company commits to driving growth amidst patent expirations, reflecting its ongoing investment in R&D and innovation aimed at mitigating the revenue impact of patent losses.
- Strategic Partnership: Novartis has entered into a collaboration with Synnovation, enhancing its competitiveness in the biopharmaceutical sector, which is expected to support future product line expansions and market share increases.
- EU Application Withdrawal: The withdrawal of Novartis's application to expand the Pluvicto label for prostate cancer in the EU may affect short-term sales expectations in that market, but it also demonstrates the company's cautious approach to regulatory compliance.
See More
Novartis CEO Warns of Drug Pricing Policy Impact
- Drug Pricing Policy Warning: Novartis CEO Vas Narasimhan warned that the U.S. Most Favored Nation (MFN) drug pricing policy poses a 'very difficult situation' for both drugmakers and patients, with significant long-term implications expected to manifest in the next 18 months.
- Market Access Delay Risk: He emphasized that Novartis is focused on urging European and Japanese governments to quickly change how they reward innovation, as failure to do so could delay the entry of novel medicines into these markets, denying patients access to essential drugs.
- Limited Sales Impact: Narasimhan noted that the MFN policy currently affects only about 5-10% of Novartis's sales in the Medicaid segment, and while there are 'good early discussions' with European governments, insufficient action has been taken to address the impending challenges.
- Concerns Over German Policy: He expressed concern over Germany's recent proposal to cut drug costs, suggesting that such measures could lead the market in the wrong direction, and stressed that governments must take the MFN policy's implications seriously.
See More
Novartis CEO Warns of U.S. Drug Pricing Policy Impact
- Pricing Policy Warning: Novartis CEO Vas Narasimhan warned that the U.S. drug pricing policy under President Trump poses a 'very difficult situation' for both drugmakers and patients, with the reality expected to set in within the next 18 months, potentially impacting stock prices and market confidence.
- Innovation Incentive Reform: He emphasized that Novartis is focused on urging European and Japanese governments to quickly change how they reward innovation; failure to do so could delay the entry of novel medicines into these markets, affecting patient access and potentially diminishing the company's competitiveness globally.
- Significant Long-term Implications: Narasimhan stated that the long-term implications of the drug pricing policy will be profound, potentially stifling innovation within the pharmaceutical industry and impacting the speed of new drug development and market entry, presenting strategic challenges for the company.
- Market Reaction Expectations: As the policy's effects become more apparent, Novartis may face pressure from investors and the market, particularly regarding its performance in drug innovation and market access, which could affect its future financial performance and shareholder confidence.
See More
BYD Faces EU Scrutiny Over Labor Abuse Allegations at Hungary Factory
- Labor Abuse Allegations: BYD has become the first Chinese company scrutinized by the European Parliament over allegations of labor abuses at its Hungary factory, highlighting increasing international regulatory attention on Chinese firms operating abroad.
- Working Conditions Investigation: A report by the New York-based watchdog China Labor Watch (CLW) claims that contractors at the factory kept thousands of employees working seven days a week with shifts exceeding 12 hours, indicating significant shortcomings in labor rights protections in the region.
- Employee Interviews Findings: CLW conducted interviews with 50 workers and visited the factory three times over the past months, revealing the harsh working conditions faced by employees, which could negatively impact BYD's brand image and reputation.
- Market Reaction Potential: This incident may raise investor concerns regarding BYD's operational risks in the European market, potentially affecting its competitive position in the global electric vehicle sector, especially as labor rights gain more attention.
See More
Novartis to Close Wehr Facility by End of 2028
- Production Strategy Shift: Novartis plans to close its Wehr manufacturing site by the end of 2028, which primarily produces solid oral dosage forms, due to its lack of competitiveness, resulting in an expected reduction of around 220 jobs, marking a significant shift in the company's production strategy.
- Commitment to Transparency: Novartis emphasizes a responsible and transparent approach in communicating with employee representatives through Germany's legally required information and consultation procedures, acknowledging the uncertainty this decision creates for employees and the local community.
- Ongoing Investment Commitment: Despite the closure of the Wehr facility, Novartis reaffirms its commitment to the German market by continuing investments in research, development, and clinical studies, ensuring that the supply of medicines to patients remains unaffected.
- Investment in Innovative Manufacturing: Novartis has announced a €35 million investment in a new radioligand therapy production facility in Halle, expected to begin operations in 2027, aimed at providing personalized cancer therapies for patients in Germany, reflecting the company's strategic push towards innovative manufacturing technologies.
See More
Latest Developments in the Biotech Sector
- Regulatory Approvals: Crinetics received European Commission approval for PALSONIFY to treat acromegaly in adults, becoming the first once-daily oral therapy in Europe, covering 27 EU member states, which is expected to significantly enhance market share.
- Acquisition Expansion: Teva is acquiring Emalex Biosciences for $700 million, bolstering its neuroscience pipeline and potentially accelerating the NDA submission for Ecopipam, thereby strengthening Teva's competitive position in the CNS disorders market.
- Clinical Trial Progress: Biomea Fusion's Icovamenib showed a 52% increase in mean C-peptide AUC in its Phase 2 trial for Type 1 Diabetes, indicating potential efficacy in early-stage patients, which may drive further development efforts.
- Market Reactions: Despite multiple approvals, AstraZeneca and Novartis saw their stock prices decline by 0.79% and 1.76% respectively, reflecting a cautious investor sentiment towards the biotech sector.
See More
Novartis Projects 8% Sales Growth for 2025 Amid Patent Challenges
- Sales Growth Projection: Novartis anticipates an 8% sales growth for 2025 despite facing historic patent cliffs, indicating confidence in its new product development and market expansion strategies, which may attract investor interest in its long-term growth potential.
- Patent Challenges: The company commits to driving growth amidst patent expirations, reflecting its ongoing investment in R&D and innovation aimed at mitigating the revenue impact of patent losses.
- Strategic Partnership: Novartis has entered into a collaboration with Synnovation, enhancing its competitiveness in the biopharmaceutical sector, which is expected to support future product line expansions and market share increases.
- EU Application Withdrawal: The withdrawal of Novartis's application to expand the Pluvicto label for prostate cancer in the EU may affect short-term sales expectations in that market, but it also demonstrates the company's cautious approach to regulatory compliance.
See More
Novartis CEO Warns of Drug Pricing Policy Impact
- Drug Pricing Policy Warning: Novartis CEO Vas Narasimhan warned that the U.S. Most Favored Nation (MFN) drug pricing policy poses a 'very difficult situation' for both drugmakers and patients, with significant long-term implications expected to manifest in the next 18 months.
- Market Access Delay Risk: He emphasized that Novartis is focused on urging European and Japanese governments to quickly change how they reward innovation, as failure to do so could delay the entry of novel medicines into these markets, denying patients access to essential drugs.
- Limited Sales Impact: Narasimhan noted that the MFN policy currently affects only about 5-10% of Novartis's sales in the Medicaid segment, and while there are 'good early discussions' with European governments, insufficient action has been taken to address the impending challenges.
- Concerns Over German Policy: He expressed concern over Germany's recent proposal to cut drug costs, suggesting that such measures could lead the market in the wrong direction, and stressed that governments must take the MFN policy's implications seriously.
See More
Novartis CEO Warns of U.S. Drug Pricing Policy Impact
- Pricing Policy Warning: Novartis CEO Vas Narasimhan warned that the U.S. drug pricing policy under President Trump poses a 'very difficult situation' for both drugmakers and patients, with the reality expected to set in within the next 18 months, potentially impacting stock prices and market confidence.
- Innovation Incentive Reform: He emphasized that Novartis is focused on urging European and Japanese governments to quickly change how they reward innovation; failure to do so could delay the entry of novel medicines into these markets, affecting patient access and potentially diminishing the company's competitiveness globally.
- Significant Long-term Implications: Narasimhan stated that the long-term implications of the drug pricing policy will be profound, potentially stifling innovation within the pharmaceutical industry and impacting the speed of new drug development and market entry, presenting strategic challenges for the company.
- Market Reaction Expectations: As the policy's effects become more apparent, Novartis may face pressure from investors and the market, particularly regarding its performance in drug innovation and market access, which could affect its future financial performance and shareholder confidence.
See More
BYD Faces EU Scrutiny Over Labor Abuse Allegations at Hungary Factory
- Labor Abuse Allegations: BYD has become the first Chinese company scrutinized by the European Parliament over allegations of labor abuses at its Hungary factory, highlighting increasing international regulatory attention on Chinese firms operating abroad.
- Working Conditions Investigation: A report by the New York-based watchdog China Labor Watch (CLW) claims that contractors at the factory kept thousands of employees working seven days a week with shifts exceeding 12 hours, indicating significant shortcomings in labor rights protections in the region.
- Employee Interviews Findings: CLW conducted interviews with 50 workers and visited the factory three times over the past months, revealing the harsh working conditions faced by employees, which could negatively impact BYD's brand image and reputation.
- Market Reaction Potential: This incident may raise investor concerns regarding BYD's operational risks in the European market, potentially affecting its competitive position in the global electric vehicle sector, especially as labor rights gain more attention.
See More
