NOVARTIS AG

Novartis reported solid second-quarter 2026 results, with net sales growing +1% in constant currencies to $14.4 billion, primarily driven by strong performance from key brands like Kisqali, Kesimpta, Scemblix, Pluvicto, and Leqvio. Core operating income remained flat (cc) at $5.9 billion. However, net income declined -19% (cc) to $3.3 billion, and EPS fell -18% (cc) to $1.71, impacted by higher income taxes and interest expenses. The company reaffirmed its full-year 2026 guidance and highlighted significant pipeline advancements, including new approvals for Rhapsido and Itvisma, and strategic acquisitions.

Novartis announced positive results from the biomarker cohort of its FORTITUDE Phase I/II study for delpacibart braxlosiran (del-brax) in facioscapulohumeral muscular dystrophy (FSHD). The study met its primary and key secondary endpoints, demonstrating reductions in KHDC1L and creatine kinase levels, indicating strong target engagement and reduced muscle damage. Del-brax, an investigational antibody oligonucleotide conjugate (AOC), shows potential to be the first disease-modifying treatment for FSHD, a rare, progressive neuromuscular disease. Novartis plans to discuss these results with global regulatory authorities, while its Phase III study for del-brax is actively enrolling patients.

Novartis AG reported a decline in its first-quarter 2026 financial results, with net sales decreasing 5% at constant currencies to $13.1 billion and net income falling 13% cc to $3.2 billion. Basic EPS also saw a drop of 11% cc to $1.65. The company completed the acquisition of Avidity Biosciences, Inc. for $12.0 billion, which significantly increased its financial debt and net debt position. While some key products like Entresto faced strong generic competition, innovative medicines such as Kisqali, Pluvicto, Kesimpta, and Scemblix demonstrated robust growth.

Novartis has agreed to acquire Avidity Biosciences for $12 billion in cash, gaining access to Avidity's RNA therapeutics platform and late-stage neuroscience programs. The acquisition is expected to strengthen Novartis' neuroscience franchise, unlock multi-billion-dollar opportunities, and raise the company's expected 2024-2029 sales CAGR from +5% to +6%.

Novartis Capital Corporation, guaranteed by Novartis AG, issued $6 billion in aggregate principal amount of debt securities across various tranches with maturities ranging from 2028 to 2055. The offering includes floating rate notes and fixed-rate notes with interest rates between 3.900% and 5.300%, indicating a significant capital raise likely for general corporate purposes or refinancing existing debt.

Novartis announced that the FDA has approved Itvisma (onasemnogene abeparvovec-brve), a gene replacement therapy, for the treatment of spinal muscular atrophy (SMA) in patients two years and older, including teens and adults. This approval expands the availability of gene therapy to a broader SMA patient population, potentially reducing the need for chronic treatments.

Novartis AG filed a 6-K report including its Q4 2025 financial report and condensed financial report. This provides investors with an update on the company's financial performance, which is crucial for assessing its valuation and future prospects.

Novartis AG filed its annual report for 2025 and a report on nonfinancial matters. These reports provide investors with insights into the company's financial performance and its environmental, social, and governance (ESG) activities, which are increasingly important for investment decisions.

Novartis AG, through its Novartis Capital Corporation, issued $11.75 billion in aggregate principal amount of debt securities, including floating rate notes and fixed-rate notes maturing between 2029 and 2056. The proceeds are likely for general corporate purposes, and the issuance provides Novartis with additional financial flexibility.