NOVN:CHE - Embedded Expectations Analysis - 2018 05 03
Novartis AG (NOVN:CHE) currently trades below corporate averages relative toUAFRS-based (Uniform) Earnings, with a 14.7x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their U.S. operations, expenses, and competition
Specifically, management may lack confidence in the sustainability of momentum in Entresto going forward, and may be downplaying concerns about Sandoz's performance in the U.S. Additionally, they may be concerned about their potential Alcon divestiture, and may lack confidence in their ability to reduce COGS through their manufacturing transformation. Moreover, they may be exaggerating their belief that many patient segments and populations can still benefit from their CDK treatment, and may lack confidence in their claim that Sandostatin will not face competition from generics in 2018
Novartis is a multinational healthcare group based in Switzerland. Co. provides healthcare solutions that address the evolving needs of patients and societies worldwide. Co.'s broad portfolio includes innovative medicines, eye care products and cost-saving generic pharmaceuticals. Co.'s operations are organized along three operating divisions: Innovative Medicines Division; Sandoz Division; and Alcon Division. Co.'s operations are supported by the Novartis Institutes for BioMedical Research and Novartis Business Services.
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