Novartis (NVS) Grew Sales Again as Entresto Fell 50%, Can Remibrutinib Carry It?
Novartis (NVS) reported a 1% increase in Q2 net sales, with newer drugs like Kisqali and Scemblix growing, offsetting Entresto's 50% decline. The company won a second US approval for Rhapsido (remibrutinib) for chronic hives. Investors focus on upcoming MS data and Q3 results, as pipeline misses have raised pressure on growth prospects. NVS trades at 17.4x 2026 earnings, with consensus expecting a 1.65% EPS dip this year.
How this was made
The 30-second read
Why it matters
The second FDA approval for remibrutinib could offset revenue gaps and support guidance, but execution risk remains.
Market read
New drug approval and guidance reaffirmation provide fresh upside catalysts for NVS.
What to watch
Potential competition from other BTK inhibitors and the need for reimbursement approvals.
Background
Novartis is navigating a sales decline in its heart‑failure drug Entresto while expanding newer brands.
Ticker impact
Novartis received a second U.S. FDA approval for remibrutinib (Rhapsido) and reaffirmed full‑year guidance, indicating fresh pipeline momentum.
potential upside as the market prices in the new drug approval and guidance reaffirmation
FDA clearance is a primary catalyst for a large pharma; analysts and investors will likely bid the stock on the growth outlook.
Market effects
Strengthens the pharmaceutical sector's outlook on innovative immunology drugs.
Positive for U.S. biotech and pharma equities.
Adds confidence to global investors tracking FDA approvals.
Counterpoint
If remibrutinib fails to achieve commercial uptake, the stock may still be pressured by Entresto's decline.
Key entities
- companyNovartis
Swiss pharmaceutical giant (ticker NVS).
- drugRemibrutinib (Rhapsido)
BTK inhibitor approved for chronic hives and now symptomatic dermographism.
