Novartis Rebounds as Artisan Partners Seeks Tougher Board Oversight After $30 Billion Wipeout

ManagementCorporate ActionPrice Action Impact 4
โดย GuruFocus·CHUS·Read original
Summary · why it matters

Novartis shares rebounded 0.8% to $138.545 Thursday as Artisan Partners' David Samra pushed the Swiss pharmaceutical group to strengthen its acquisition review process and establish a dedicated board committee to challenge major transactions before billions of dollars are committed. The pressure followed two clinical disappointments that helped trigger a record one-day stock plunge of more than 10%, wiping out nearly $30 billion in market value. Del-desiran, obtained through the $12 billion Avidity acquisition, missed its late-stage trial goal, and Samra also questioned compensation measures that exclude writedowns, though he praised CEO Vas Narasimhan's handling of the underlying business. Novartis stood by its guidance, pipeline and approach to capital allocation. The $12 billion Avidity purchase equals roughly 2.2 times Novartis's latest quarterly free cash flow and about 83% of quarterly revenue, while the $138.545 share price sits 5.81% above the $130.94 GF Value estimate.

Impact on stocks 3

Biotech & Genomic Medicine▲ · 1 stocks
Novartis AG
NOVN
▲ PositiveCapitalrelevance

Novartis shares rebounded 0.8% as it stood by guidance and capital allocation after the $30B wipeout tied to the Avidity deal and del-desiran trial miss.

Financials▲ · 1 stocks
Cybersecurity & Digital Trust▲ · 1 stocks

Theme Impact 1

Related news

3

Ascendis Pharma Regains TransCon Metabolic Rights After Novo Nordisk Split

Ascendis Pharma has regained exclusive rights to TransCon technology-based products in metabolic and cardiovascular diseases after ending its collaboration with Novo Nordisk. The company plans to advance its own programs in obesity and type 2 diabetes using its TransCon platform, with management highlighting once-monthly TransCon Semaglutide as a planned program within its expanded metabolic disease pipeline. Control of once-monthly TransCon Semaglutide and other metabolic projects shifts Ascendis from a partner model with Novo Nordisk to running these programs itself, concentrating both the potential upside and the development and commercialization costs inside one balance sheet. The regained rights and the once-monthly TransCon Semaglutide plans are only one part of the Ascendis story, and the company's existing rare endocrine portfolio still centers on YORVIPATH, SKYTROFA, and TransCon CNP or YUVIWEL. Key proof points now sit in the clinic and on the cash line, including formal trial initiation for once-monthly TransCon Semaglutide in obesity and type 2 diabetes, plus any updated R&D and share repurchase commentary at events such as the September 15, 2026 Morgan Stanley conference.
ASNDNOV.XETRA
Biotech & Genomic Medicine
Simply Wall St·4hRead more →
▲

BioMarin Reports Positive Phase 3 VOXZOGO Hypochondroplasia Data and Files sNDA

BioMarin Pharmaceutical reported positive Phase 3 CANOPY-HCH-3 results for VOXZOGO in children with hypochondroplasia and submitted a supplemental FDA application to expand the drug's use, while also adding Bristol Myers Squibb research leader Robert Plenge, M.D., Ph.D., to its Board and Science and Technology Committee. The late-stage data cover an indication with no approved treatments, and the company said the combination of the results and the board appointment underscores its focus on deepening its rare disease franchise and scientific oversight. BioMarin's narrative projects $5.0 billion revenue and $1.3 billion earnings by 2029, requiring 14.0% yearly revenue growth and about a $1.2 billion earnings increase from $73.0 million today, with a $91.42 fair value cited, a 43% upside to its current price. More pessimistic analysts warn that heavy reliance on a few rare disease drugs and uncertainty around future indications could leave BioMarin short of pre-news expectations of about US$4.7 billion in revenue and roughly US$509.5 million in earnings by 2029.
BMRN ▲
Biotech & Genomic Medicine ▲
Simply Wall St·6hRead more →
▲

BioMarin Targets $200 Million Amicus Synergies as VOXZOGO Nears $1 Billion

BioMarin Pharmaceutical said it is progressing with the integration of Amicus Therapeutics and expects $200 million in annual non-GAAP cost savings, with most synergies realized in 2027 and full realization in 2028. Speaking at Morgan Stanley's Global Healthcare Conference, President and CEO Alexander Hardy said Amicus had about 505 employees and BioMarin expects to retain approximately 192 over the long term, with about 70% of the savings coming from general and administrative expenses and the remainder from duplicated research and development functions. Chief Financial Officer Brian Mueller said the deal should be accretive in its first year, with substantial accretion beginning next year, and that leverage is now expected to fall below 2.5 times by the middle of 2027, nearly a year earlier than the initial target. Hardy said VOXZOGO delivered 20% quarterly patient growth despite U.S. competition and is expected to reach $1 billion in revenue this year, which would make it BioMarin's first blockbuster product, while a potential FDA approval in hypochondroplasia is not incorporated into its 2026 outlook. BioMarin projects peak sales of approximately $1.4 billion for GALAFOLD and $1.2 billion for POMBILITI + OPFOLDA by the mid-2030s, and said PALYNZIQ grew 27% to $135 million while VIMIZIM has the potential to exceed $1 billion in revenue.
BMRN ▲
Biotech & Genomic Medicine ▲
MarketBeat·21hRead more →
© 2026 MarketDXNews