Novartis AG stock (CH0012005267): eyeing Sandoz spin-off and new drug approvals

Novartis AG is reshaping its portfolio with the completed spin-off of generics unit Sandoz and a sharper focus on innovative medicines. Recent FDA decisions, solid earnings and a streamlined structure keep the Swiss pharma giant in the spotlight for US healthcare investors.

Novartis AG has been in transition over the past quarters, sharpening its focus on patented medicines after the spin-off of its Sandoz generics business and advancing a series of late-stage therapies that could shape its long-term growth profile, according to company updates and recent earnings disclosures. For US investors following large-cap pharma, the group’s New York listing and exposure to major US therapeutic markets such as cardiovascular disease and oncology remain central to the investment case, as reflected in the company’s communications with shareholders and financial reports.

From a corporate-structure perspective, Novartis completed the spin-off of Sandoz in October 2023, creating a separately listed generics and biosimilars company and leaving the remaining group more tightly focused on innovative prescription drugs, as outlined in investor materials and regulatory filings at the time. Management has since reiterated a strategy centered on four priority therapeutic areas—cardiovascular, immunology, neuroscience and oncology—while also emphasizing operational efficiency and capital allocation discipline through earnings presentations and investor-day commentary.

On the earnings front, Novartis has reported growing revenue and profitability driven largely by key growth brands such as heart-failure therapy Entresto, cancer drug Kisqali and immunology medicine Cosentyx in recent quarters, based on its published quarterly results and accompanying slide decks. The company has repeatedly highlighted double-digit growth from its “key brands” segment, while legacy and off-patent products generally represent a smaller and declining share of total sales, according to these same disclosures.

In parallel, the pipeline narrative has become increasingly important. Novartis has pointed to multiple late-stage programs in cardiovascular and oncology, alongside gene and cell therapies in earlier stages, in order to support medium- to long-term growth once older products face patent expiries, as discussed in R&D day presentations and pipeline updates. Regulatory milestones in the US and Europe—such as approvals or label expansions for targeted therapies—are integral to this strategy, and the company frequently reports these developments through press releases and regulatory news services.

As of: 28.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Novartis
• Sector/industry: Pharmaceuticals and biotechnology
• Headquarters/country: Basel, Switzerland
• Core markets: Innovative prescription medicines in cardiovascular, oncology, immunology and neuroscience
• Key revenue drivers: Patented specialty drugs and oncology therapies
• Home exchange/listing venue: SIX Swiss Exchange (NOVN); American Depositary Receipts on NYSE (NVS)
• Trading currency: Swiss franc on SIX; US dollar for ADRs on NYSE

Novartis AG: core business model

Novartis AG is a global healthcare group that focuses primarily on discovering, developing and commercializing prescription medicines across a range of specialty areas, according to its corporate profile and recent annual reports. Following portfolio streamlining moves over the past several years—including the divestment of eye-care unit Alcon and the spin-off of Sandoz—the company now reports most of its revenue from innovative pharmaceuticals rather than generics or consumer-health activities.

The business model relies on sustained investment in research and development, clinical trials and regulatory processes to bring new therapies to market, while maintaining and expanding indications for existing products throughout their life cycle as described in company R&D communications. This innovation-driven approach requires sizable upfront spending but can generate high-margin revenue streams when drugs secure regulatory clearance and reimbursement, particularly in large markets such as the United States and the European Union.

Within its core portfolio, Novartis positions itself as a specialist in chronic and often severe conditions, including heart failure, certain cancers and autoimmune diseases, according to treatment-area summaries provided by the company. By concentrating on diseases with significant unmet medical need and high healthcare burden, the group aims to create differentiated therapies that can command premium pricing where payers see clear clinical benefits, a theme that repeatedly appears in its investor presentations and market-access discussions.

Geographically, Novartis generates revenue across all major regions, with a substantial contribution from the United States and other developed markets, based on segment disclosures in recent financial filings. These markets typically offer higher average pricing but also tighter scrutiny from regulators, payers and policymakers on drug affordability, meaning that commercial performance can be influenced not only by clinical data but also by health-technology assessments and pricing negotiations.

Main revenue and product drivers for Novartis AG

According to its latest available quarterly and annual earnings reports, Novartis identifies several key brands as primary growth engines, including cardiovascular therapy Entresto, immunology drug Cosentyx and oncology treatments such as Kisqali and Pluvicto. These products have posted robust year-on-year sales increases in recent periods as reported by the company, benefitting from expanding indications, broader geographic rollout and increased physician adoption.

Entresto, used in certain heart-failure patients, has been one of the company’s flagship drugs, with Novartis highlighting strong prescription trends and growing penetration in both the US and international markets in its earnings commentary. Regulatory approvals and updated treatment guidelines in major countries have supported its use, and management has frequently pointed to cardiovascular disease as a long-term strategic pillar given its global prevalence and significant morbidity.

Cosentyx, an immunology medicine for conditions such as psoriasis and psoriatic arthritis, is another important contributor, with the company reporting continued volume growth across indications and regions. However, competitive dynamics in immunology remain intense, with rival biologics and small-molecule therapies vying for market share, a theme that external industry analysts and trade publications often highlight when discussing the broader segment. Novartis has responded by pursuing additional indications and real-world evidence to reinforce Cosentyx’s positioning.

Oncology represents a major strategic and financial pillar for Novartis, as evidenced by its extensive cancer portfolio and pipeline described in oncology-focused investor materials. Kisqali, a targeted therapy for certain types of breast cancer, has been showcased as a high-growth asset, while radioligand therapies such as Pluvicto add a differentiated modality in prostate cancer. The company has emphasized the potential of radioligand technology as a platform, supporting further R&D investment in this area.

Beyond these flagship brands, Novartis also generates revenue from a range of other specialty products and legacy medicines, along with royalties and collaboration income disclosed in its segment reporting. Patent cliffs remain an ongoing consideration, as some established products will face generic competition over time, prompting the company to balance lifecycle management for current drugs with investment in new indications and novel pipeline assets to sustain portfolio growth.

Conclusion

Novartis AG has emerged from a multi-year portfolio reshaping phase as a more concentrated innovative medicines company with a strong presence in cardiovascular, oncology, immunology and neuroscience. Key growth brands such as Entresto, Cosentyx and Kisqali, alongside radioligand therapies, underpin current revenue momentum and provide a bridge toward pipeline assets that seek to address high-burden diseases.

At the same time, the group continues to face familiar sector challenges, including patent expiries, pricing pressure and intense competition in major therapeutic categories. Regulatory outcomes, clinical-trial data and reimbursement decisions in the US and other key markets are likely to remain central drivers of sentiment around the stock. For US-focused investors, Novartis’s ADR listing and meaningful revenue exposure to the American healthcare system make it a relevant name within the global large-cap pharma universe, while its reshaped portfolio places greater emphasis on high-value specialty medicines.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.