Swiss Stocks Held Steady As Novartis Slipped On A Downgrade

Novartis' experimental heart drug, pelacarsen, failed to reduce heart attack and stroke risk in a large trial, despite lowering Lp(a) levels by 80%. Doctors and investors await detailed results. Other drugmakers, like Amgen and Eli Lilly, are developing similar drugs. Novartis' stock dropped 16% following the news. The trial's outcome may impact future Lp(a)-targeting drug development.

Merck, Eli Lilly, Novartis, and AstraZeneca allegedly paid high bonuses to Russian distributors, enabling a corruption scheme in Russia's healthcare system, according to a whistleblower report. The report claims excessive rebates and non-competitive practices, with Merck's R-Pharma winning most bids for Keytruda. The companies either declined or did not respond to comments.

Deutsche Bank downgraded Novartis (NOVN) to 'sell' from 'hold', cutting its price target to CHF115 from CHF120. The bank cited the stock's recovery from failed drug trials and a 'somewhat mixed' third quarter. Novartis reported Q3 core EPS of $2.46, beating estimates, but revenue missed. The stock trades at a P/E of 31.11, 6% below its 52-week high.

Deutsche Bank downgraded Novartis (NYSE: NVS) to Sell from Hold, lowering its price target to CHF115.00 from CHF120.00, citing mixed Q3 results and high valuation. The stock has risen post-earnings, trading near its 52-week high with a P/E ratio of 31.11. Novartis reported Q3 core EPS of $2.46, beating estimates, but revenue was slightly below expectations at $14.52 billion. The company raised its profit outlook despite a significant impairment charge.

Merck, Eli Lilly, Novartis, and AstraZeneca allegedly paid millions in bonuses to Russian distributors, including R-Pharm, which faces corruption allegations. Whistleblower reports claim these payments may have facilitated kickbacks to officials for cancer drug contracts, potentially violating the U.S. Foreign Corrupt Practices Act. The companies have not publicly addressed the allegations.

Novartis reported a 61% drop in Q3 operating income, with $2.2B in charges due to drug trial setbacks. The company reduced the value of a muscle-wasting drug by $5.48B and wrote off a failed heart drug. Despite this, Novartis raised its 2026 profit outlook, citing strong demand for key drugs. Management affirmed its M&A strategy, expecting $20B+ in free cash flow by 2028.