Amarin's Bleak Prospects vs. Novartis' Strong Investment Appeal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy NVS?
Source: Fool
- Amarin's Declining Performance: Amarin's total revenue fell by 6.5% year-over-year to $213.6 million in fiscal 2025, despite a 22% stock price increase over the past year, indicating a weakening competitive position in the market.
- Cost-Cutting Initiatives: Amarin successfully reduced its net loss per share from $0.20 in 2024 to $0.09 in 2025 through workforce reductions, demonstrating the company's efforts to improve its financial health despite declining sales.
- Legal Dispute Risks: Amarin is engaged in a legal battle with Hikma Pharmaceuticals at the U.S. Supreme Court, and a favorable outcome could boost its stock price; however, the ongoing legal risks pose significant threats to its future.
- Novartis' Steady Growth: Novartis reported sales of $54.5 billion in 2025, an 8% increase, with earnings per share rising 15% to $8.98, showcasing its ability to sustain growth despite patent expirations, supported by a diverse product portfolio and a robust pipeline.
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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: 148.090
Low
112.00
Averages
127.75
High
143.00
Current: 148.090
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.
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- High Dividend Yield: With a dividend yield of approximately 3.3%, nearly three times the S&P 500's average of 1.2%, this ETF effectively targets high-yield stocks like Roche, Novartis, and Shell, making it attractive for income-focused investors.
- International Diversification: The fund holds over 1,500 stocks, with its largest holding (Roche) comprising only 1.8%, significantly reducing the impact of any single stock on overall returns; additionally, 43% of its holdings are in Europe, 27% in the Pacific, and 21% in emerging markets, enhancing geographical diversification.
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- Novartis Acquisition Agreement: Novartis (NVS) rose 1.05% in premarket trading after announcing an agreement to acquire an experimental breast cancer drug from Synnovation Therapeutics for up to $3 billion, which will enhance Novartis's competitive position in the HR+/HER2⁻ breast cancer market.
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- Acquisition Scale: Novartis has agreed to acquire Synnovation Therapeutics' experimental breast cancer drug SNV4818 for up to $3 billion, which includes $2 billion upfront and up to $1 billion in milestone payments, demonstrating Novartis's strategic commitment to oncology.
- Drug Development Progress: SNV4818 is currently undergoing Phase 1/2 clinical trials for HR+/HER2- breast cancer and other advanced solid tumors, with preclinical studies indicating strong activity against common PIK3CA mutations and clear selectivity over the normal enzyme, highlighting its potential clinical value.
- Targeting Mechanism Advantage: The drug is designed to target the mutated PI3Kα enzyme in cancer cells while sparing the wild-type PI3Kα in healthy cells, thereby reducing unwanted side effects, supporting more consistent dosing, and facilitating earlier combination with hormonal therapies and other treatments.
- Transaction Timeline: The deal is expected to close in H1 2026, subject to customary closing conditions including regulatory approvals, indicating Novartis's long-term strategy in cancer treatment and emphasis on innovative therapies.
See More
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- Increased Cytotoxicity: Preclinical studies show that CX-5461 generates reactive oxygen species (ROS) when exposed to UV light, increasing cytotoxicity against cancer cells by approximately ten-fold, indicating its effectiveness and potential applications in cancer treatment.
- New Mechanism Discovery: The binding of CX-5461 to G-quadruplex DNA structures works synergistically with light-induced ROS generation, significantly enhancing anti-tumor activity and prolonging survival, demonstrating its potential as a novel photosensitizer.
- Broad Market Prospects: The global photodynamic therapy market is projected to grow from approximately USD 3.54 billion in 2024 to USD 5.89 billion by 2032, with a CAGR of about 7-8%, reflecting increasing demand for precision oncology and minimally invasive therapies, prompting Senhwa to advance related research and international collaborations.
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