Novartis vs. Peer group- Growth rate differential to widen going forward
Novartis reported solid revenue growth driven by Sandoz, recently launched products and Alcon Acquisition. Going forward, NVS is well positioned with its strong pipeline, recently launched products and diversified business strategy to grow against pricing and patent expiry pressures. Recently launched products and pipeline products on the horizon (Galvus, Gilenya, Bexsero, Menveo, INC424, Lucentis, Afinitor, NVA237 and QVA149), should together add $8-9b to the topline over the next five years. While Tasigna should be able to more or less retain the sales of CML franchise till 2023, when its patent expires. For Sandoz, post Lovenox, respiratory generics (Advair generic - by 2012) and Copaxone are near term opportunities, while biosimilar will shape up in the longer term. Novartis is in better position to return back profits to investors compare to its global peers in unfavorable environment mainly due to its diversified business model and timely launch of semi-blockbuster new products.
COMPANIES MENTIONED
Novartis, NVS
Novartis, NVS
