Novartis AG: Receives a Sell rating from Goldman Sachs

Novartis (NVS) halted development of ALS drug VHB937 after it failed a Phase II trial. The company will stop the ALS program but continue studying the drug for Alzheimer's. This follows recent failures of del-desiran and pelacarsen, which erased $30B in market value. Novartis reported Q2 free cash flow of $5.6B and reaffirmed its full-year outlook, with strong sales growth in Kisqali, Kesimpta, Scemblix, Pluvicto, and Leqvio.

Novartis (NOVN) has gained attention after European regulators gave a positive opinion for expanding Cosentyx's use to polymyalgia rheumatica. The company's share price has seen mixed performance, down 8.9% over the past month but up 7.0% year-to-date. Analysts estimate a fair value of CHF126.13, suggesting the stock is undervalued at its current price of CHF116.14. Investors are weighing this catalyst alongside broader performance and valuation signals.

The EMA's CHMP approved Povofortay (Incyte) for marketing to treat moderate to severe hidradenitis suppurativa (HS) in adults who failed anti-TNF therapy. It is the first oral option for HS, reducing pain and lesions. Cosentyx (Novartis) gained a new indication for polymyalgia rheumatica (PMR) in adults unresponsive to glucocorticoids. Both drugs showed efficacy in clinical trials.

Novartis' Cosentyx received a positive CHMP opinion for treating polymyalgia rheumatica (PMR) in adults. If approved, it would be the first IL-17A inhibitor for PMR in Europe. The recommendation is based on the REPLENISH phase 3 trial results. The European Commission is expected to make a final decision within two months.

Novartis (NVS) faces pressure from a major shareholder after several clinical trial setbacks, including failures in studies for del-desiran, pelacarsen, and rap-cel. However, the company reported positive Phase III results for remibrutinib and a positive CHMP opinion for Cosentyx. Novartis reaffirmed its 2026 guidance, expecting low single-digit net sales growth and a decline in core operating income. The stock closed at $140.37, down 0.39%.

Gilead Sciences expanded licensing for investigational once-yearly lenacapavir for HIV prevention, aiming to streamline future approval and distribution. WHO updated malaria guidelines to include Coartem® Baby, an antimalarial for newborns developed by Novartis and partners, now approved in 11 countries.