Novartis Earnings: Despite Solid Results, Increasing Generic Pressure in 2025 Likely to Slow Growth

We are holding steady to our $105/CHF 96 fair value estimate (ADR/local share class) following solid second-quarter results that, although slightly ahead of our projections, were not enough to move the valuation. We believe the market is appropriately valuing the stock, with a balanced view of the strength of the pipeline offsetting patent losses, setting up moderate growth over the next three years while also supporting a wide moat over the long term.