August 9, 2009 / 8:24 PM / 11 years ago

Drug-maker Novartis poised for stock surge - Barron's

NEW YORK, Aug 9 (Reuters) - Stock in Swiss drug company Novartis NOVN.VX(NVS.N) is poised to rise as the company’s pipeline of new drugs is one of the most promising in the industry, Barron’s business weekly said on Sunday.

“They’re a proven innovation engine, we’re starting to see the fruits of their labor,” analyst Jeff McCormack, of Manning & Napier Advisors, was quoted as saying in the publication.

Barron’s noted Novartis has a $1 billion contract to provide the U.S. government with swine flu (H1N1) vaccine this year. Also two meningitis vaccines should hit the U.S. market by 2012.

Vaccines and biologics, which use proteins rather than chemicals, account for one-quarter of Novartis’ pipeline and sales are expected to rise 20 percent annually for the next five year, the magazine said.

It noted Novartis’ U.S.-listed stock — American Depository Receipts — has risen 33 percent off a seven-year low in March. But shares have lagged behind the broader stock market gains, mostly because foreign currency fluctuations hurt revenue.

However, with the promising drug pipeline, and ADRs trading at less than 12 times 2010 earnings and yielding 3.8 percent, “the scenario looks bullish.

“Novartis should have hearts pounding on Wall Street,” said Barron’s. (Reporting by Steve James; Editing by Marguerita Choy)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below