Novartis On Its Way To $100

Novartis (NYSE:NVS) announced its second quarter earnings report there this week and I don’t think there was anything in the announcement that should make long investors doubt their current position. Why? Well if we look at the fundamentals of the company, its apparent in my opinion that there are still far more growth triggers than potential headwinds. There was an array of approvals and results in the second quarter and some important phase III trials definitely impressed when you dig down into the actual results.

For example CTL019 could easily become a blockbuster in the cell therapy segment as it’s a huge market and there is nothing currently approved to treat cancer in this area whether it be in the U.S or Europe. Other compounds in the pipeline this I like the look of at present are RTH258 in Ophthalmology & ACZ885 in the cardiovascular area. There is a good chance that both compounds will get approved. The former helps patients maintain their vision and the latter reduces inflammation for patients who have suffered a previous heart attack. These are markets where approved drugs should gain traction quickly. The next few quarters will be interesting.


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