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Highlights from 41st JPM Healthcare conference $NVS
“Now our vision is to become the most valued and trusted medicines company in the world. That's a long-term vision.”

Vasant Narasimhan, CEO $NVS

“over the last five years, we've done over $100 billion of transactions – or planned transactions to come to a 100% innovative medicines company. And with each one of these, we really strive to do things in a shareholder-friendly way”

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“One key priority of ours is to improve our position in the U.S. We are the number one player in Europe. We will be one of the top three players in Japan and China.”

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“we have 6 major in-market brands, each with multibillion-dollar potential in sales, most of which have long LOE time lines; three, additional multibillion-dollar assets,”

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“And what we expect that to deliver is consistent 4% sales growth and over 40% core margin. It's important that 40% margin is for the total company, inclusive of the corporate cost of being a conglomerate. So that's a pretty big step up from where we are today.”

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We analysed Novartis AG in our newsletter back in November. Novartis link
Buying Your Time's avatar
Got to love a company aiming for fat margins and big bumps in FCF.

The ROIC goals though! Is that a doubling they're aiming for?
StockOpine's avatar
@buyingyourtime they did not specify an exact ROIC target though from the presentation it appears that growth in ROIC is higher than growth in FCF. That’s what they said 👇

“I'm very interested, particularly in return on invested capital, where I think we have the opportunity now to rerate ourselves into the top quartile of the peer group.”
Buying Your Time's avatar
@stockopine I guess the alpha is buying it today before its prices. If they execute and do as they say then this stock will reward well.
StockOpine's avatar
@buyingyourtime possibly yes but any patent invalidity may alter these plans so there are risks as well. Disclosure: We do own $NVS
Buying Your Time's avatar
@stockopine Last question as i should read your write-up ...

Are they making acquisitions into gene therapy at all? Lots of bargains out there, and gene therapy and similar tech will provide a new runway for growth.
Joshua Simka's avatar
@buyingyourtime Not sure about the acquisitions but they have more than 20 projects in their own gene therapy pipeline at Novartis

StockOpine's avatar
@buyingyourtime missed that. Gene and cell therapies is one of the emerging technology platforms that $NVS wants to leverage. One notable acquisition made in the past was AveXis (renamed to Novartis Gene Therapies) for $8.7B. The drug developed and commercialized by AveXis (Zolgensma) to treat spinal muscular atrophy is already a blockbuster drug with considerable upside potential.

Other notable acquisition was Gyroscope back in December 2022 that aims to treat geographic atrophy (disease in retina that can cause blindness).

So yes. They do make acquisitions in the space. Hope that answers your question.
Buying Your Time's avatar
@stockopine Makes sense. With strides being made towards preventative medicine you want to have some participation in the space.
Buying Your Time's avatar
@tomato Thanks for this

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