Novartis: 2 Significant Pipeline Setbacks Can Be Absorbed

ONeil Trader Investing Group Leader Follow Summary Novartis shares plunged after late-stage failures of pelacarsen and del-desiran, impacting its long-term growth outlook. Despite setbacks, Novartis reiterated 2025-2030 revenue growth guidance of 5-6% CAGR, aided by Rhapsido’s phase 3 success in RMS. Rhapsido’s positive data in relapsing multiple sclerosis offer partial offset, with potential for $3 billion+ in annual peak sales. I remain confident in NVS’s long-term positioning and believe the company can absorb these late-stage setbacks. However, I see limited near-term share price appreciation potential in the near term due to these setbacks and the lack of other meaningful catalysts. I do much more than just articles at Growth Stock Forum: Members get access to model portfolios, regular updates, a chat room, and more. Learn More » s-cphoto/iStock via Getty Images Shares of Novartis AG ( NVS ) plunged today after the company announced that its late-stage pipeline assets pelacarsen and del-desiran failed in their respective phase 3 trials. Even though the company reiterated its 2025-2030 revenue growth This article was written by ONeil Trader 9.65K Followers Follow ONeil Trader is a former stockbroker turned full-time independent investor. He focuses on finding growth and biotech stocks with significant growth potential.He leads the investing group Growth Stock Forum which features: a model portfolio of 12-15 names updated regularly, a Top Picks list of up to 10 stocks that are expected to perform well in the current calendar year, Momentum Ideas that target both short-term and medium-term moves, and chat with community dialogue and for questions. Learn More. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. This article reflects the author's opinion and should not be regarded as a buy or sell recommendation or investment advice in any way. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.