Novartis Bets on Pipeline Over M&A as Biotech Deals Hit Record $216 Billion

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Novartis is leaning on its late-stage pipeline rather than pursuing acquisitions, even as biotech M&A reaches a record $216 billion in 2026. CEO Vas Narasimhan is counting on three upcoming trial readouts—pelacarsen for cardiovascular disease, remibrutinib for multiple sclerosis, and del-desiran for myotonic dystrophy type 1—which analysts estimate could generate more than $10 billion in combined peak annual sales. The company faces a $4 billion revenue drop from Entresto this year after second-quarter sales fell 50% to $1.18 billion, and it beat profit expectations with core operating profit of $5.94 billion. Novartis shares have gained 14% this year, and its short float of 0.28% is the lowest among large-cap peers, though Goldman Sachs warns the stock's valuation could come under pressure if at least two of the three trials do not succeed.

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Biotech & Genomic Medicine▲ · 4 stocks
Novartis AG
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Novartis is betting on late-stage pipeline trial readouts (pelacarsen, remibrutinib, del-desiran) which could generate >$10B in sales, but success is uncertain; Goldman Sachs warns valuation could suffer if trials fail.

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