Novartis AG

The Phillip World Innovation Fund, or PWIN, and the Phillip World Innovation Retirement Mutual Fund, or PWINRMF, have received a positive boost from the global rise in healthcare stocks, one of the three core investment themes the funds emphasize, alongside information technology, semiconductors, AI and data centers, and clean energy infrastructure. The S&P 500 Healthcare Index has risen 10.8% since the outbreak of conflict in the Middle East, calculated from the closing price on March 2, 2026, compared with the closing price on August 19, 2026, according to Bloomberg data. A specific positive factor came from late-stage trial results in patients with melanoma skin cancer, indicating that the use of Moderna's mRNA vaccine in combination with Merck's Keytruda produced positive outcomes. This sent Moderna's share price soaring by as much as 176% and lifted Merck's shares by 12% on August 19 alone. Other healthcare stocks such as Eli Lilly, Novartis, and Pfizer also saw significant gains.

Aktis Oncology, a clinical-stage radiopharmaceutical company, is seen as a potential acquisition target for Novartis, Eli Lilly, and Bristol Myers Squibb due to its alpha-emitting cancer platform and upcoming trial data. Aktis retains full worldwide rights to its miniprotein radioconjugate platform, with $517.3 million in cash and preliminary data from its lead candidate AKY-1189 expected in the first quarter of 2027. Novartis, whose Pluvicto grew 43% in Q2 2026, and Eli Lilly, already a $60 million upfront partner, rank as the top two strategic acquirers. Analysts target $34.42 for AKTS while the 24/7 Wall St. base case reaches $42.16, but a failed readout would erase the takeout premium entirely.

Genmab raised its full-year revenue outlook to between $4.325 billion and $4.525 billion after first-half revenue climbed 25% to $2.05 billion, driven by a 24% increase in royalty revenue to $1.71 billion. The biotechnology company's U.S.-listed shares rose about 4.4% in Friday morning trading. Royalties from Johnson & Johnson's Darzalex, which generated $8.17 billion in sales, and Novartis' Kesimpta fueled the growth, while EPKINLY and TEPKINLY revenue surged 48% to $312 million. Adjusted operating profit rose 18% to $656 million, but reported operating profit edged up just 1% to $555 million due to integration costs and higher amortization. Management also lifted adjusted operating-profit guidance to $1.225 billion, even as operating expenses climb to support the launch of Rina-S and petosemtamab.

Monte Rosa Therapeutics announced second-quarter 2026 financial results and clinical progress, reporting a cash position of $626.0 million expected to fund operations into 2029. The company completed enrollment and dosing in the GFORCE-1 Phase 1 study of MRT-8102 in subjects with elevated cardiovascular disease risk, with data readout anticipated in the second half of 2026. Monte Rosa plans to initiate multiple Phase 2 studies for MRT-8102, including a Phase 2b trial in patients with elevated atherosclerotic risk and cardiometabolic syndrome in the second half of 2026, a study in gout patients in the fourth quarter of 2026 or first quarter of 2027, and a study in moderate to severe hidradenitis suppurativa in the first half of 2027. Collaborator Novartis activated a Phase 2a/b trial of the VAV1-directed molecular glue degrader MRT-6160 in Sjögren's disease, triggering an expected milestone payment to Monte Rosa under a deal worth up to $2.1 billion in milestones. The company also activated the MODeFIRe-1 Phase 2 study of MRT-2359 in combination with apalutamide for metastatic castration-resistant prostate cancer patients with androgen receptor mutations. Net loss for the quarter was $43.4 million, compared to $12.3 million in the prior-year period, while collaboration revenue fell to $9.0 million from $23.2 million.

Novartis received FDA approval for Pluvicto in PSMA positive metastatic hormone sensitive prostate cancer, expanding the drug's label to cover all stages of PSMA positive metastatic prostate cancer. The decision nearly doubles the eligible patient pool in the US and makes Pluvicto the only PSMA targeted agent approved across metastatic prostate cancer. Late stage data showed a 33% reduction in risk of progression or death when added to standard of care. The approval strengthens Novartis's position in radioligand therapies, though uptake may depend on specialized handling infrastructure and physician adoption.

Novartis, Abbott Laboratories, and Visa are highlighted as three dividend stocks capable of sustaining consistent payout growth over the long term. Novartis is navigating the largest patent expiry in its history, yet second-quarter net sales rose 3% year over year to $14.4 billion, supported by newer products like Kesimpta and Fabhalta, and it has increased dividends for 29 consecutive years with a forward yield of 3%. Abbott Laboratories, a Dividend King with at least 50 straight annual payout increases, is seeing strength in its medical device segment led by the FreeStyle Libre continuous glucose monitoring franchise and has bolstered its diagnostics unit through an acquisition in cancer diagnostics. Visa, which has raised its dividend every year since going public in 2008, continues to grow revenue and earnings while leveraging its vast network and integrating buy-now-pay-later capabilities to fend off competition and legal challenges.

The food allergy market across the seven major markets was valued at approximately USD 2.7 billion in 2025 and is projected to expand at a robust CAGR of 9.4% through 2036, according to DelveInsight. The seven major markets comprise the United States, EU4 (Germany, France, Italy, and Spain), the United Kingdom, and Japan. Key approved therapies include peanut allergen powder (PALFORZIA), omalizumab (XOLAIR), and epinephrine nasal spray (NEFFY). The pipeline features several emerging therapies, including DBV Technologies' Viaskin Peanut Patch in Phase III, Novartis' remibrutinib in Phase II, Aravax's PVX108 in Phase II, GSK's ozureprubart in Phase II, and Aquestive Therapeutics' epinephrine sublingual film ANAPHYLM in Phase III. GSK strengthened its position through the acquisition of RAPT Therapeutics, gaining access to ozureprubart.

The CAR T-cell therapy market for non-Hodgkin lymphoma is projected to grow at a compound annual growth rate of approximately 7% through 2036, according to a new report from DelveInsight. The market reached USD 3.2 billion across the seven major markets in 2025, with the United States accounting for roughly 59% of that total. Key drivers include rising incidence of relapsed or refractory NHL, growing investment in cell and gene therapy, and a robust pipeline of emerging therapies such as Zamtocabtagene autoleucel from Miltenyi Biomedicine, Rapcabtagene autoleucel from Novartis, and WU-CART-007 from Wugen. The report also highlights recent regulatory milestones, including full FDA approval of TECARTUS for relapsed or refractory mantle cell lymphoma and the approval of BREYANZI as the first CAR T-cell therapy for marginal zone lymphoma in the United States.

Several major companies reported second-quarter 2026 results. Novartis shares rose 2.9% after posting revenues of $14.41 billion, exceeding the Zacks Consensus Estimate of $13.95 billion. General Motors gained 4.9% on earnings of $3.57 per share, beating the estimate of $3.13. 3M climbed 7.3% with earnings of $2.40 per share, above the $2.27 estimate. Synchrony Financial fell 1.6% after revenues of $4.61 billion missed the $4.66 billion estimate.

The Hong Kong stock market is expected to rebound on Wednesday after the Hang Seng Index dipped slightly on Tuesday. The index fell 10.76 points or 0.04 percent to close at 25,132.29, with losses in financial and energy sectors partially offset by gains in technology stocks. Positive earnings news from companies such as 3M, General Motors, and Novartis drove Wall Street higher, with the Dow Jones Industrial Average rising 385.38 points or 0.74 percent to 52,224.64, the NASDAQ advancing 329.13 points or 1.29 percent to 25,837.21, and the S&P 500 gaining 65.92 points or 0.89 percent to 7,509.20. The rally was also supported by strength in technology stocks, as the NYSE Arca Computer Hardware Index surged 5.9 percent and the Philadelphia Semiconductor Index jumped 5.2 percent. Crude oil prices spiked, with West Texas Intermediate crude for August delivery up $1.77 or 2.13 percent at $85.00 per barrel, amid supply concerns from the Strait of Hormuz crisis.

The Taiwan stock market is expected to open higher on Wednesday after the TSE surged 1,783.17 points, or 4.20 percent, to close at 44,232.87 on Tuesday, snapping a three-day losing streak that had erased nearly 3,200 points. The rally was driven by strong gains in technology stocks, with financials and plastics also advancing, and was supported by a firm lead from Wall Street where the Dow rose 385.38 points, the NASDAQ added 329.13 points, and the S&P 500 gained 65.92 points. Positive earnings reports from companies such as 3M, General Motors, and Novartis encouraged buying, while the NYSE Arca Computer Hardware Index soared 5.9 percent and the Philadelphia Semiconductor Index jumped 5.2 percent. Crude oil prices also spiked, with West Texas Intermediate crude for August delivery up $1.77 to $85.00 per barrel, as U.S. attacks on Iran continued to raise supply concerns. Taiwan will release June unemployment figures later today, following a May jobless rate of 3.32 percent.

Novartis CEO Vas Narasimhan said artificial intelligence could reduce the overall drug discovery and development timeline from 12 to 14 years down to eight years, while potentially raising the probability of success in human trials from 8% to 15% or higher. Speaking after the company topped second quarter earnings estimates, Narasimhan noted that Novartis began investing in AI years ago, working with Palantir in 2016 and 2017 to build a data platform called Data 42, and is now scaling AI across every phase of research and development. He cautioned that it will take 8 to 10 years to fully measure AI's impact because the fixed timelines for animal testing and human clinical trials cannot be shortened, and enough AI-supported medicines must complete that process before the benefits become clear.

Novartis reported stronger-than-expected second-quarter results, with earnings excluding certain items remaining unchanged at $5.94 billion, beating the $5.34 billion average analyst estimate. Sales also came in above expectations and returned to growth, even as Entresto sales fell 50% due to cheaper generic alternatives entering the market. The company maintained its full-year forecast for sales growth and a low-single-digit decline in core operating profit, surprising some analysts who had expected a guidance upgrade. Newer treatments helped offset the decline, including the chronic skin disease pill Rhapsido, which generated $64 million in quarterly revenue after launching in the US and China. CEO Vas Narasimhan has announced more than $15 billion of acquisitions over the past year to build a new generation of growth medicines, and the company is planning seven new US facilities as part of a broader $23 billion manufacturing expansion.

HSBC’s Rajesh Kumar says healthcare still offers a defensive haven as investors grow anxious about AI investments and geopolitical uncertainty. The broader pharmaceutical sector posted strong first-quarter earnings, with investors expecting guidance upgrades at half-year reporting, and Kumar noted that healthcare provides a relatively safer universe of companies driven by bottom-up drivers. Novartis delivered half-year results that beat both HSBC and market forecasts, helped by disciplined cost management that offset gross margin pressures from Entresto, though Kumar flagged the repeatedly delayed clinical trial readout for Pelacarthen as the primary risk. On AI’s potential for drug development, he offered a tempered view, saying biology takes its own time and that real-world trials remain essential regardless of in silico models. Kumar added that U.S. regulatory headwinds have substantially eased after deals between pharma companies and the administration last year, with clearer FDA timelines, expanded domestic manufacturing, and renewed deal-making reducing the macro overhang from most-favored-nation or tariff concerns.

Stocks may move back to the upside in early trading on Tuesday following the previous session's downturn, with S&P 500 futures up 0.4 percent. Positive reactions to earnings from 3M, General Motors, and Novartis are inspiring traders to pick up stocks at reduced levels, while Nasdaq 100 futures are jumping 1.2 percent. Overall trading activity may be subdued due to a lack of major U.S. economic data and ahead of earnings from Alphabet, IBM, and Tesla later this week. A sharp increase in crude oil prices, with U.S. crude futures surging 2 percent amid U.S.-Iran tensions, could limit buying interest. In overseas trading, Japan's Nikkei 225 Index surged 3.3 percent and China's Shanghai Composite Index jumped 1.8 percent, while major European markets were little changed.

Novartis beat second-quarter expectations on both revenue and earnings while reaffirming its full-year 2026 outlook despite weaker free cash flow. The Swiss drugmaker reported adjusted earnings of $2.41 per share, beating estimates by $0.26, and revenue rose 2.6% from a year earlier to $14.41 billion, about $350 million above Wall Street expectations. Free cash flow fell 12% to $5.6 billion, making cash generation the softer part of the quarter. Management maintained its forecast for low-single-digit sales growth and a low-single-digit decline in core operating income for the full year.

Several companies made notable premarket moves following their latest earnings reports. Novartis shares jumped 4% after the Swiss pharmaceutical company posted second-quarter core earnings of $2.41 per share on revenue of $14.41 billion, both exceeding StreetAccount consensus estimates. General Motors gained more than 1% after reporting adjusted earnings of $3.57 per share on revenue of $48.03 billion, topping LSEG forecasts. 3M surged more than 5% as the conglomerate beat second-quarter expectations and raised its full-year guidance. Domino's Pizza slipped 1% after earnings of $4.07 per share missed the LSEG consensus of $4.17 per share, though revenue of $1.19 billion slightly beat estimates. Nebius Group rallied 6% after Nvidia disclosed a 9.3% stake in the AI cloud company. Taiwan Semiconductor Manufacturing rose more than 3% on a Nikkei Asia report that it will raise chipmaking service prices by up to 10% next year. Crown Holdings climbed more than 2% after beating top- and bottom-line estimates with earnings of $2.49 per share on revenue of $3.67 billion. Steel Dynamics dipped 1% despite an earnings beat, as it recorded an additional non-cash impairment charge of $16 million. Cracker Barrel Old Country Store added more than 1% after saying it expects to achieve or exceed the high end of its fiscal 2026 revenue range and exceed its adjusted EBITDA outlook.

The American Kidney Fund and the IgA Nephropathy Foundation have created new patient guidelines for IgA nephropathy, a rare kidney disease. The guidelines are based on recently updated KDIGO clinical practice guidelines and were developed using patient focus group input and clinician review. They provide plain language explanations of the disease, an overview of available treatment options, and practical guidance for discussing treatment with healthcare teams in a printable format. The resource is available on AKF’s website and will be offered in Spanish, Korean, and simplified Chinese, with an interactive version planned for later this year. The effort is part of AKF’s “A Step Ahead of IgA Nephropathy” educational campaign, supported by sponsors including Novartis Pharmaceuticals Corporation, Otsuka America Pharmaceutical Inc., Travere Therapeutics, Vertex Pharmaceuticals Incorporated, and Calliditas Therapeutics.

The global smart inhalers market is projected to grow from $5.2 billion in 2024 to $12.1 billion by 2030, a compound annual growth rate of 15.4%, according to a new report from BCC Research. The expansion is driven by poor medication adherence among asthma and COPD patients, with compliance rates often below 50%, leading to preventable hospitalizations and emergency visits. North America holds the largest market share, supported by digital health infrastructure and new CMS Remote Therapeutic Monitoring reimbursement codes. Key players include AstraZeneca, GSK plc, Novartis AG, Boehringer Ingelheim International GmbH, Adherium, and Amiko Digital Health Ltd.

Cathie Wood's ARK Genomic Revolution ETF has purchased $15.3 million worth of Ionis Pharmaceuticals shares since the beginning of July, following a sharp decline in the stock after a late-stage trial failure for eplontersen in ATTR-CM. The purchases came after Ionis and partner AstraZeneca announced the surprise setback, suggesting Wood is capitalizing on the drop while maintaining a long-term view. Ionis recently won FDA approval for Tryngolza to treat severe hypertriglyceridemia, expanding its target market to more than 3 million U.S. patients, and is pivoting to commercialize its own assets with peak sales guidance raised to $3 billion. The company reported first-quarter revenue of $246 million, up 86% year over year, and expects to reach cash flow break-even by 2028. Ionis also has late-stage pipeline catalysts including a priority review for zilganersen in Alexander disease and an upcoming phase 3 readout for pelacarsen partnered with Novartis.

The healthcare sector saw multiple U.S. FDA approvals, including Novartis’ Fabhalta for IgA nephropathy and Merck’s LIPFENDRA for hypercholesterolemia, alongside Eli Lilly’s $2.8 billion acquisition of AtaiBeckley. Novartis received traditional FDA approval for Fabhalta as the first complement inhibitor for adults with primary IgAN at risk of progression, while Merck won approval for LIPFENDRA, the first once-daily oral PCSK9 inhibitor, which cut LDL-C by up to 59% in the Phase 3 CORALreef trial. Eli Lilly agreed to acquire all outstanding shares of AtaiBeckley for $6.75 per share in cash plus up to $2.50 per share in a contingent value right, with the upfront cash consideration of approximately $2.8 billion and the CVR representing an additional potential value of approximately $1.0 billion. Other notable developments included Veradermics reporting positive Phase 2 results for its oral minoxidil formulation VDPHL01 in women with pattern hair loss, where a 4.5 mg once-daily dose led to an average increase of 22.7 hairs per square centimetre, and Insmed announcing encouraging 12-month data for its treprostinil palmitil inhalation powder in pulmonary arterial hypertension.

Novartis has received traditional FDA approval for Fabhalta to slow kidney function decline in adults with primary IgA nephropathy at risk of progression. The approval comes as Novartis shares have returned 15.21% year to date and 39.56% over one year, with the stock last closing at CHF125. A widely followed fair value estimate places the stock at CHF123.55, suggesting it is about 1% overvalued, while its price-to-earnings ratio of 20.9x sits just above the European pharmaceuticals average of 20.8x and well below a peer average of 44.1x.

The US FDA has granted traditional approval to Novartis' Fabhalta for slowing kidney function decline in adults with primary immunoglobulin A nephropathy at risk of disease progression. In the Phase III APPLAUSE-IgAN study, Fabhalta slowed eGFR decline by 48% versus placebo over two years, with an annualized mean change of -3.0 mL/min/1.73 m² compared with -5.7 mL/min/1.73 m² for placebo. The drug, a first-in-class oral Factor B inhibitor targeting the alternative complement pathway, had previously received accelerated approval in August 2024 for proteinuria reduction. Fabhalta is available only through a REMS program requiring vaccinations due to the risk of serious infections from encapsulated bacteria. Novartis also noted that nearly 100 percent of US patients pay $10 or less per month through its support programs.

The global carcinoid syndrome market is expected to record significant growth during the 2025–2035 forecast period, supported by the rising prevalence of neuroendocrine tumors, improved diagnostic capabilities and increasing demand for effective symptom management. Market expansion is also being supported by advances in targeted treatments and the availability of U.S. Food and Drug Administration-approved therapies, with somatostatin analogs, telotristat ethyl and peptide receptor radionuclide therapy remaining important components of treatment strategies. North America holds the largest share of the market, benefiting from advanced healthcare infrastructure, established neuroendocrine tumor treatment networks and broad access to approved medicines. Key drivers include the rising prevalence of neuroendocrine tumors, advancements in treatment options, greater awareness and earlier diagnosis, and increasing research investment, while high treatment costs and limited options for advanced cases remain major challenges. Prominent companies operating in the market include Novartis AG, Ipsen, Lexicon Pharmaceuticals and Crinetics Pharmaceuticals.

PTC Therapeutics is gaining momentum behind its newly launched PKU therapy Sephience, which generated $125 million in first-quarter 2026 product revenues, a 36% sequential increase. The drug is now approved in the U.S., Europe, Japan and other markets, with management expecting availability in nearly 30 countries by year-end. As of March 31, 2026, 1,244 patients were on therapy worldwide, and the U.S. was adding roughly 140 new patient start forms per month. Beyond Sephience, PTC's commercial portfolio includes the DMD franchise Emflaza and Translarna, the gene therapy Upstaza/Kebilidi, and royalty revenues from Roche's Evrysdi. The pipeline features votoplam for Huntington's disease, which reported positive phase II extension data and triggered a $50 million milestone payment from Novartis upon phase III initiation, and vatiquinone for Friedreich's ataxia, with a registration-enabling study planned for the third quarter of 2026. PTC shares have risen 17.9% year to date, outpacing the industry's 6.3% gain, and the stock carries a Zacks Rank #1 (Strong Buy).

Artificial intelligence is attracting over $1.4 billion in cumulative funding for cardiovascular drug development, according to a new BCC Research report. The investment surge is led by Novo Nordisk's $190 million partnership with Valo Health and HeartFlow's $1.2 billion in total funding for AI-powered cardiovascular diagnostics. Regulatory agencies including the FDA, EMA, and PMDA are showing increasing receptiveness toward real-world data and digital health tools, creating clearer pathways for AI-enabled development. Major pharmaceutical companies such as Pfizer, AstraZeneca, Eli Lilly, Novartis, Bayer, Johnson & Johnson, Roche, Merck, and Sanofi are actively incorporating AI tools into cardiovascular R&D processes. The report highlights AI's role in optimizing clinical trials, transforming pharmacovigilance, and integrating value-based care evidence.

The global chronic obstructive pulmonary disease market is projected to grow from USD 25.06 billion in 2025 to USD 40.39 billion by 2035, at a compound annual growth rate of 4.89 percent, according to a new report by SNS Insider. Bronchodilators held the largest revenue share in 2025 at 48.10 percent, while corticosteroids are expected to register the fastest CAGR of 5.04 percent through 2035. Chronic bronchitis accounted for 60.80 percent of market revenue in 2025, and the treatment segment captured 65.10 percent of revenue. North America led with over 38.40 percent market share in 2025, while Asia Pacific is forecast to grow at the highest CAGR of 5.99 percent. Key players include AstraZeneca, Boehringer Ingelheim, GlaxoSmithKline, Novartis, and Teva Pharmaceutical Industries.

The systemic lupus erythematosus market is at a turning point as six late-stage emerging therapies advance toward potential approval, according to DelveInsight. The market, valued at approximately USD 3 billion in 2025 across the United States, EU4, the United Kingdom, and Japan, is projected to grow at a compound annual growth rate of 10.4% through 2036. Among the highlighted candidates, Biogen and Royalty Pharma's litifilimab has completed enrollment in two Phase III trials with topline results expected in the second half of 2026, while Roche has submitted regulatory applications for obinutuzumab and received FDA acceptance of its supplemental Biologics License Application with a decision anticipated by December 2026. Novartis' ianalumab is in Phase III studies with results expected in 2027 and a potential regulatory submission in 2028, Johnson & Johnson's nipocalimab received Fast Track Designation in March 2026, Idorsia Pharmaceuticals and Viatris' cenerimod is in two Phase III trials and also holds Fast Track Designation, and AbbVie's upadacitinib has advanced to Phase III testing following positive Phase II results.

Novartis has agreed to acquire UK-based Myricx Bio in a transaction valued at up to $1.5 billion. The deal includes $1.1 billion in upfront and milestone payments tied to the progress of Myricx Bio's oncology programs. Myricx Bio adds a first-in-class N-myristoyltransferase inhibitor ADC platform focused on treating cancers that may not respond well to existing ADC payloads. The acquisition gives Novartis access to a differentiated ADC payload approach targeting treatment-resistant tumors, an area many large pharma groups are pursuing as cancer care becomes more tailored. The transaction size and upfront structure underline Novartis' meaningful capital commitment to this area, with progress updates on these assets likely to be closely followed by investors.

Brandon Capital announced that Novartis has agreed to acquire its portfolio company Myricx Bio in a deal valued at up to US$1.5 billion, including an upfront cash payment of US$1.1 billion and potential milestone payments. Myricx Bio is a UK-based pre-clinical oncology company developing a novel class of payloads for antibody-drug conjugates, and the acquisition brings together Novartis' oncology strengths with Myricx's two lead ADC assets and its next-generation N-myristoyltransferase inhibitor payload platform. Brandon Capital played an instrumental role in forming Myricx Bio as a spin-out from Imperial College London and the Francis Crick Institute, co-founding the company in 2019 and providing strategic and operational support through its early development. The exit is expected to generate a significant return for Brandon Capital's investors, including Australian superannuation funds Hostplus, HESTA, and Aware Super, as well as CSL and QIC. The transaction is expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals.