Find My Moat

WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES

Checking

Wide moat stocks

Novartis AG NOVN

SIX SwissPharmaceuticalsFinancials to Jun 30, 2026 · Updated Oct 9, 2026

On Stock Analysis · affiliate link
NOVN financials
Moat score
56
ROIC
18.6%
P/E
21.3
EV/EBIT
18.2
FCF yield
5.5%
Dividend yield
3.3%
Market cap
$272.0B

Moat ranks

Score rankTied #336 of 396
Durabilitymedium
Market structureOligopoly
Pricing powermoderate

Balance sheet

6/30/26
$BDec 31Jun 30
Cash11.47.6
Securities0.10.0
Debt33.547.0
Net cash-21.9-39.3
Equity46.141.5
Leverage
Debt / EBITDA
2.14×
Debt / equity
1.13×
Leases (6/30/26)
$1.9B
Capital
Diluted shares
1,914M
Book value / share
$21.70
Price / book
6.5×
Net cash / share
−$20.56
Market cap
$272.0B
Enterprise value
$311.4B

Per-share record

Fiscal years and TTM
Scale
$0$10$20$30'16'17'18'19'20'21'22'23'2428.99'2529.62TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q2 '26
IndicatorLatestVs year agoLast 8 quarters
Revenue growth0.8%-14.5 pts
Operating margin31.8%-1.0 pts
FCF margin34.3%-6.9 pts
Capex / revenue5.1%+1.3 pts
Entresto net sales$1.2B-50%
Leqvio net sales$480M+61%
Cosentyx net sales$1.8B+12%
Kesimpta net sales$1.4B+32%
Kisqali net sales$1.7B+44%

Margins and growth from reported quarters; company KPIs as reported in results releases.

About NOVN

Novartis sells innovative medicines across cardiovascular and renal disease, immunology, neuroscience and oncology, alongside mature brands. H1 2026 drug net sales were USD27.5bn; including profit sharing and royalties, reported revenue was USD28.5bn.

Revenue mix
Oncology 31.0%Established Brands 24.9%Immunology 19.1%Cardiovascular, Renal and Metabolic 12.6%Neuroscience 12.5%
  • IP Choke Point

    Leqvio has US patent protection listed through 2034 and EU protection through 2035.

  • IP Choke Point

    Cosentyx has listed US protection through 2029 and EU protection through 2030; Rhapsido adds a new protected oral medicine and gained a second US indication in October.

  • IP Choke Point

    Kesimpta has listed US protection through 2031, although its EU composition patent has expired and other rights vary by country.

  • IP Choke Point

    Kisqali has listed protection through 2031 in the US and 2032 in the EU; Pluvicto through 2034 and 2037, and Scemblix through 2035 and 2037.

Timeline
  1. Oct 7, 2026

    FDA approved Rhapsido for symptomatic dermographism, expanding its US immune-disease market beyond chronic spontaneous urticaria.

  2. Oct 2, 2026

    Novartis agreed to license Abogen's ABO2203 worldwide and option other RNA programmes, with USD575m upfront and up to approximately USD7.2bn of conditional milestones. Closing and clinical success remain uncertain.

  3. Sep 17, 2026

    CHMP recommended Cosentyx for polymyalgia rheumatica, supporting a potential new indication while European Commission approval remains pending.

  4. Sep 8, 2026

    Del-desiran failed the HARBOR primary endpoint, weakening the DM1 investment case after the Avidity acquisition; Novartis kept its 2025-2030 sales-growth guidance.

  5. Sep 4, 2026

    Pelacarsen failed its pivotal cardiovascular-events endpoint despite lowering Lp(a), weakening a planned source of replacement revenue.

Ownership

To 10/8/26
CEO
Vasant (Vas) Narasimhan
Since 2018 · 8 yrs
Professional CEOSingle share class
Insider trades0
Planned sales3

Go deeper on NOVN

On Find My Moat

On this page

Financial record

Fiscal year2016201720182019202020212022202320242025TTMTrendChange 2016–25
Per share ($)
Revenue20.6018.3119.6720.9921.7319.4619.7822.3025.4228.9929.62+3.9%/yr
Cash flow4.785.326.095.885.956.676.486.918.669.799.61+8.3%/yr
Earnings2.803.165.463.083.5210.142.754.105.877.156.67+11.0%/yr
Free cash flow3.584.364.964.904.825.545.465.606.787.807.83+9.0%/yr
Capex1.200.971.130.971.131.131.021.321.871.991.78+5.8%/yr
Dividends2.702.742.972.873.043.263.423.473.754.004.74+4.5%/yr
Book value31.1831.2833.5423.9224.6529.9427.0122.3121.6423.6021.70-3.0%/yr
Diluted shares (M)2,4002,3712,3442,3192,2962,2602,1972,0922,0351,9551,914-2.3%/yr
Totals ($B)
Revenue49.443.446.148.749.944.043.546.751.756.756.7+1.5%/yr
Operating income8.38.78.49.110.210.17.99.814.517.617.1+8.8%/yr
Net income6.77.512.87.18.122.96.08.611.914.012.8+8.5%/yr
Free cash flow8.610.311.611.411.112.512.011.713.815.215.0+6.6%/yr
Buybacks1.15.52.05.52.83.110.78.78.39.26.9+26.5%/yr
Dividends6.56.57.06.67.07.47.57.37.67.89.1+2.1%/yr
Net cash-16.2-19.1-16.4-16.0-24.6-1.0-7.5-10.6-16.1-21.9-39.3−$5.7B
Margins & returns (%)
Gross margin64.668.668.570.469.773.373.473.375.275.874.7+11.3 pts
Operating margin16.720.018.218.720.322.918.320.928.131.130.2+14.4 pts
Net margin13.617.327.814.716.252.113.918.423.124.722.5+11.1 pts
FCF margin17.423.825.223.422.228.527.625.126.726.926.4+9.5 pts
ROIC8.08.27.811.211.012.910.515.021.322.818.6+14.8 pts
Return on equity9.010.116.312.914.333.910.218.427.130.330.7+21.3 pts
R&D % of revenue18.319.318.419.318.019.721.124.419.419.820.6+1.5 pts
Stock pay % of revenue1.72.02.02.21.92.12.32.42.52.3–+0.6 pts
Capex % of revenue5.85.35.74.65.25.85.25.97.46.96.0+1.1 pts

Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.

TTM = four quarters to Jun 30, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 11.9% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score56
Strength
Confidence
Structure
Oligopoly
Durability
medium
Trajectory
narrowing
Pricing power
moderate
Segments
  • Cardiovascular, Renal and Metabolic12.6%
    1 claim
  • Immunology19.1%
    1 claim
  • Neuroscience12.5%
    1 claim
  • Oncology31.0%
    2 claims
  • Established Brands24.9%
    No moat

Moat claims

Applies to
Cardiovascular, Renal and Metabolic
Confidence
Durability
medium
Trajectory
narrowingas of Oct 8, 2026
Why it holds

Leqvio has US patent protection listed through 2034 and EU protection through 2035. Entresto's US generic entry shows why exclusivity is time-limited: Q2 sales halved. Patents protect specific molecules rather than the whole cardiovascular market.

Why narrowing

Q2 Entresto sales fell 50% after US generic entry. Leqvio grew 61%, but the pelacarsen outcomes trial failed in September, reducing a possible source of replacement revenue.

Indicators
  • Entresto net sales$1.2B-50%
  • Leqvio net sales$480M+61%
  • Generic competition effect on net sales-14.0%-12.0 pts
  • Pricing effect on net sales-3.0%-4.0 pts
Risks
  • Patent expiry / loss of exclusivity (LOE)
  • Generic or biosimilar entry
  • IP litigation losses or adverse settlements

Profile change log

  1. Oct 9, 2026 · analyst revision

    Added the Pluvicto indication expansion and Abogen licence to the investment case and linked direct operating evidence to the radioligand production claim. Moat strengths, directions and the established-brands evidence status remain unchanged.

  2. Oct 9, 2026 · business change

    Novartis agreed to license Abogen's ABO2203 worldwide and option other RNA programmes, with USD575m upfront and up to approximately USD7.2bn of conditional milestones. Closing and clinical success remain uncertain.

  3. Oct 9, 2026 · business change

    FDA expanded Pluvicto to PSMA-positive metastatic androgen pathway modulation-naive or-sensitive prostate cancer, enlarging the eligible treatment population. Progression-free survival improved; overall-survival data remained immature.

  4. Oct 8, 2026 · business change

    Novartis paused eight rap-cel immunology and neuroscience trials in late August after three fatal immune-reaction cases, leaving safety review as a limit on the investigational programme.

  5. Oct 8, 2026 · business change

    FDA approved Rhapsido for symptomatic dermographism, expanding its US immune-disease market beyond chronic spontaneous urticaria.

  6. Oct 8, 2026 · business change

    CHMP recommended Cosentyx for polymyalgia rheumatica, supporting a potential new indication while European Commission approval remains pending.

  7. Oct 8, 2026 · business change

    Del-desiran failed the HARBOR primary endpoint, weakening the DM1 investment case after the Avidity acquisition; Novartis kept its 2025-2030 sales-growth guidance.

  8. Oct 8, 2026 · business change

    Pelacarsen failed its pivotal cardiovascular-events endpoint despite lowering Lp(a), weakening a planned source of replacement revenue.

  9. Oct 8, 2026 · business change

    Remibrutinib succeeded in both Phase III REMODEL MS trials, adding clinical support for an oral therapy while approval remains pending.

  10. Oct 8, 2026 · business change

    Novartis announced a Myricx Bio acquisition agreement, adding an ADC research platform subject to closing; it is not yet a marketed revenue source.

  11. Oct 8, 2026 · business change

    The European Commission approved Itvisma for spinal muscular atrophy, broadening the gene-therapy franchise.

  12. Oct 8, 2026 · business change

    A US district court issued an adverse Lutathera patent-validity ruling. Novartis appealed, leaving a live challenge to product protection.

  13. Oct 8, 2026 · business change

    Novartis began construction of its Denton radioligand site, adding planned geographic capacity for time-sensitive patient doses.

  14. Oct 8, 2026 · business change

    Mukul Mehta became CFO, succeeding Harry Kirsch; the finance transition coincides with major pipeline investment and debt issuance.

  15. Oct 8, 2026 · business change

    Novartis completed its approximately USD12.0bn Avidity acquisition, adding neuromuscular RNA programmes and substantial research-asset and financing exposure.

  16. Oct 8, 2026 · business change

    Novartis distributed Sandoz shares, concentrating the group on innovative medicines; the cashless spin-off gain is excluded from continuing earnings.

  17. Oct 8, 2026 · business change

    Novartis sold its Roche stake and recognised a USD14.572bn non-taxable gain, separating a large investment disposal from recurring earnings.

  18. Oct 8, 2026 · business change

    Novartis spun off Alcon, removing eye-care devices and changing the scope of the reported business.

  19. Oct 8, 2026 · business change

    Novartis sold its GSK Consumer Healthcare stake, creating a USD5.79bn pretax gain that does not represent recurring drug earnings.

  20. Oct 8, 2026 · analyst revision

    Completed product-specific patent and manufacturing trajectories, management and the investment debate. Moderate oncology pricing reflects Medicare negotiation and active therapeutic competition. Established brands retain their verified-no-moat status and all claim strengths remain unchanged.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianNOVNPFEMRKBMYROP

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

Global prescription pharmaceuticals

As of Oct 9, 2026
CompetitiveLow cyclicalityUSD 1,668B in 2025

Prescription medicines sold through retail and hospital channels at manufacturer prices worldwide, including originator brands, generics and biosimilars. Roche and CSL Vifor compete in specialty medicines, with each serving only part of this market. This broad market excludes diagnostics, medical devices and over-the-counter medicines; it is not a company-addressable revenue forecast.

  1. Eli Lilly
2025 leaders, no comparable shares · Nature Reviews Drug Discovery
StocksMoatGross m.Op. m.
NOVN5674.7%30.2%
Industry median176972.9%22.1%
Sector median557661.5%17.0%
All stocks median3987652.9%19.6%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • Aging populations and long treatment periods support demand for cancer, immune and neurological medicines. Patient need is less sensitive to the economic cycle than discretionary spending.
  • New indications and better clinical outcomes expand treated populations; a successful launch can replace revenue lost when an older product loses exclusivity.
  • Biologics and convenient formulations can improve care and adoption, but convenience must remain valuable against new treatments.
  • Insurance coverage and healthcare access expand demand in emerging markets; reimbursement inclusion can increase volume while lowering price.
  • Growing cancer treatment options and diagnostic testing can increase eligible patients; commercial value still depends on better outcomes and reimbursement.
Risks
  • Patent expiry and biosimilar entry remove product protection. Clinical superiority can also take share before patents expire.
  • US Medicare negotiation and international reference pricing, European reimbursement reviews and Chinese tenders constrain price. Voluntary agreements can exchange tariff relief for price concessions and change the timing of launches across countries.
  • Trials, safety findings, manufacturing control failures and failed acquired drug programmes can destroy invested capital or restrict supply. Pipeline size and patents alone do not establish commercial success.
  • Higher interest rates raise acquisition and financing costs. Tariffs, local production rules and biologic manufacturing requirements increase the cash needed to launch and supply products.
  • Exchange-rate moves change reported sales and profit for global manufacturers. Merck reported Q2 2026 sales growth of 5% in USD and 4% excluding currency, while Roche's Swiss-franc reporting faced translation pressure.
  • Vaccine eligibility, uptake and public procurement can change quickly. Pfizer’s XFG-adapted Comirnaty approval covers older people and younger people with a risk condition, constraining the eligible market.

Bulls & bears

Key question · as of Oct 9, 2026

Can Kisqali, Kesimpta, Pluvicto, Scemblix and new indications replace generic losses while producing enough cash to justify the acquired pipeline and higher debt?

Arguments

5 forFaded: weakening or settled6 against

What to watch

  1. 1Quarterly product sales for growth brands and Entresto
  2. 2Established-brand sales and generic-competition drag
  3. 3Operating cash flow after gross PPE and intangible purchases
  4. 4Total borrowings, interest expense and acquisition payments
  5. 5Remibrutinib MS review, del-desiran development path, Abogen closing and acquired-asset impairments
  6. 6RLT delivery reliability, site approvals and Lutathera patent appeal

Next check: October 27, 2026 Q3 results: replacement sales, cash generation, Avidity carrying values and the clinical-development outlook.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 8, 2026. Not investment advice.

Cite or reuse this data

Free to reuse, commercially too, with a credit link. See the data license.

Moat Score 56/100 by <a href="https://www.findmymoat.com/stocks/XSWX:NOVN">Find My Moat</a> (as of September 2026)

Request update

Spot something outdated? Send a quick note and source so we can refresh this profile.

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.