Novartis shares closed higher on Friday, with its Zurich-listed stock rising 0.6% to 119.96 Swiss francs and its U.S. ADRs climbing 1.5%. The positive movement comes amid strategic developments aimed at fueling long-term growth.
Strategic Investments and Market Access
The pharmaceutical giant has commenced construction on a new biomedical research facility in San Diego, part of a broader $23 billion commitment to U.S. research and development. The center, slated to open in 2029, is expected to employ approximately 1,000 staff and will leverage artificial intelligence to accelerate drug discovery.
Concurrently, Novartis reported a favorable draft reimbursement recommendation from Canadian authorities for its breast cancer therapy, Kisqali. This recommendation covers early-stage, hormone receptor-positive, HER2-negative breast cancer, potentially expanding patient access. The draft decision is not yet final and will proceed to pricing negotiations.
Navigating a Transition Period
These developments arrive as Novartis confronts a significant patent expiry wave, including for key products like Entresto and Xolair. The company has forecast a low single-digit percentage decline in adjusted operating profit for 2026. Management emphasizes a strategy to grow through this transition, balancing near-term market access wins with long-term R&D investments.
Investor attention now turns to the firm's annual general meeting scheduled for March 6, where shareholders will vote on a proposed gross dividend of 3.70 francs per share. The ex-dividend date is set for March 10, with the payment following on March 12.