Novartis Expands $23 Billion U.S. Manufacturing to Mitigate Tariff Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Benzinga
- Strategic Investment: Novartis's $23 billion investment in U.S. manufacturing aims to supply the market from domestic facilities, effectively reducing the risk of tariffs imposed by the Trump administration and enhancing the company's competitiveness in the U.S. market.
- Inventory Buffer: Existing stockpiles provide Novartis with additional protection, helping the company manage short-term trade disruptions and ensuring stability and reliability in drug supply.
- Pricing Commitment: Under its agreement with the U.S. government, Novartis supports drug pricing objectives and commits to maintaining consistent prices for new medicines across high-income countries, further solidifying its market position.
- Long-Term Growth Outlook: Novartis projects a compound annual sales growth rate of 5% to 6% through 2030, demonstrating a strong growth trajectory and a sustained pipeline strategy that ensures future business momentum.
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Analyst Views on NVS
Wall Street analysts forecast NVS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVS is 127.75 USD with a low forecast of 112.00 USD and a high forecast of 143.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
1 Buy
4 Hold
1 Sell
Hold
Current: 147.870
Low
112.00
Averages
127.75
High
143.00
Current: 147.870
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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