Novartis Scores Big with FDA Approval, But Trump’s Price Demands Cast a Shadow
Novartis AG, the Swiss pharmaceutical giant, has just received FDA approval for its twice-yearly medication Leqvio (inclisiran) to be used as a first-line treatment for patients with high LDL-C levels. This new indication is a game-changer, allowing Leqvio to be used alone, without the addition of statin therapy, as an adjunct to diet and exercise for LDL-C reduction. The approval sends a clear message: it’s time to get aggressive about LDL-C lowering.
The statistics are stark: four out of five patients with atherosclerotic cardiovascular disease are not reaching guideline-recommended LDL-C targets. This is a ticking time bomb, and Novartis’ Leqvio is a much-needed solution. Analysts are singing the company’s praises, with four recommending the stock for purchase and eight advising to hold. The average price target of analysts is around 102 CHF, indicating a potential increase of around 8 CHF from the current price.
But just as Novartis is basking in the glory of its FDA approval, a dark cloud looms on the horizon. US President Donald Trump’s demands for lower medication prices have sent shockwaves through the pharmaceutical industry, and Novartis is not immune. The company’s stock price has taken a hit, along with other pharmaceutical companies, as a result of Trump’s price demands.
The Bottom Line
- Analysts are optimistic about Novartis, with four recommending the stock for purchase and eight advising to hold.
- The average price target of analysts is around 102 CHF, indicating a potential increase of around 8 CHF from the current price.
- Trump’s price demands have sent the company’s stock price into a tailspin, along with other pharmaceutical companies.
What’s Next?
The FDA approval of Leqvio is a major victory for Novartis, but the company’s stock price is still reeling from Trump’s price demands. Will the company be able to weather the storm and emerge stronger on the other side? Only time will tell.