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Why Novartis (SWX:NOVN) Is Up 6.9% After Rhapsido FDA Approval and Cosentyx Discount Initiative

Simply Wall St · 10/03/2025 20:33
  • Novartis recently received FDA approval for Rhapsido (remibrutinib) as the first oral Bruton's tyrosine kinase inhibitor for chronic spontaneous urticaria in adults who remain symptomatic despite H1 antihistamine treatment, and launched a direct-to-patient platform in the US offering Cosentyx at a 55% discount for cash-paying patients.
  • These actions highlight Novartis’ expanding focus on immunology innovation and patient affordability, offering new therapeutic options and enhanced access to its top-selling biologic therapy.
  • We'll examine how Novartis' FDA approval of Rhapsido could influence its growth outlook and its investment appeal in immunology.

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Novartis Investment Narrative Recap

To be a Novartis shareholder today, you need to believe in the company's ability to drive growth through innovation in immunology and specialty medicine, while managing the threat of generic competition for its blockbuster drugs. The recent FDA approval of Rhapsido may boost sentiment around Novartis' immunology franchise and pipeline, yet does not materially alter the immediate risk posed by potential loss of exclusivity on key products, which remains the most significant near-term challenge for the business.

Of all the recent announcements, the launch of the Cosentyx direct-to-patient platform at a 55% discount stands out as especially relevant. This initiative could improve patient access and potentially support prescription volumes for a top-selling asset, at a time when pricing pressures and competition are heightening across core immunology and specialty medicine categories.

But while investors may be encouraged, the risk of accelerated revenue decline due to generic entry, particularly for blockbuster brands, remains an important consideration...

Read the full narrative on Novartis (it's free!)

Novartis' narrative projects $59.1 billion in revenue and $17.3 billion in earnings by 2028. This requires 2.3% yearly revenue growth and a $3.6 billion earnings increase from $13.7 billion currently.

Uncover how Novartis' forecasts yield a CHF99.08 fair value, a 6% downside to its current price.

Exploring Other Perspectives

SWX:NOVN Community Fair Values as at Oct 2025
SWX:NOVN Community Fair Values as at Oct 2025

The Simply Wall St Community has estimated Novartis' fair value from CHF99.08 up to CHF269.82 based on seven projections. Expectations for growth in innovative medicine are balanced by concern over looming generic threats, leaving plenty of viewpoints for you to explore.

Explore 7 other fair value estimates on Novartis - why the stock might be worth over 2x more than the current price!

Build Your Own Novartis Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.