Analysis of Novartis share price

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The pharmaceutical sector is currently one of the most popular on the stock market and is followed by numerous investors. If you particularly wish to invest in Novartis Group shares we provide useful information here on this company as well as a clear and concise analysis of its share price with historical stock market charts.  

Latest news

Novartis completes acquisition in the neuropsychiatric field

18/12/2020 - 09h49

In a press release issued late yesterday, the pharmaceutical group Novartis announced that it was about to acquire the American neuropsychiatry laboratory Cadent.

Elements that can influence the price of this asset:

Analysis N°1

We are currently seeing a great increase in the development of the innovative medical sector, notably in the technological and health company sectors. The position of Novartis in these two sectors could enable it to generate new profits.

Analysis N°2

The Novartis Group also tends to develop its activities and its presence in the under-developed and poorer countries. This strategy can, over the long term, be fruitful concerning the increasing health requirements in these economic zones.

Analysis N°3

Novartis can also benefit from its long experience and expertise in this sector to develop long lasting solutions throughout the world. For this it can count on its numerous human and technological resources.

Analysis N°4

However, the obsolescence of certain treatments and technologies continues to be a significant source of losses for Novartis which must maintain its profitability over the long term by remaining constantly innovative.

Analysis N°5

Finally, it should be remembered that competition in this activity sector poses a real threat to Novartis, the large worldwide pharmaceutical groups show no mercy when taking parts of the market and depositing new patents.

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General presentation of the Novartis Company:

You have undoubtedly heard about the Novartis group, even if it’s just the name that rings a bell. This company is currently in fact one of the global leaders in the pharmaceutical sector. Although the majority of its turnover is generated through pharmaceutical products this company also operates its activities in other sectors such as ocular care, generic medicines, vaccines, diagnostic products and others.

The majority of its profits are generated in Switzerland but its activities are spread throughout Europe, the United States, Japan and in South America.


Know the competition to Novartis shares:

The pharmaceutical company Novartis is currently one of the leaders in the pharmaceutical sector worldwide but is facing increasingly strong competition, notably relating to the generic medicine market. It is therefore extremely important to complete a comprehensive study of this competition and follow the financial reports and events of large companies in this sector to trade successfully in Novartis shares.


The strategic alliances implemented by the Novartis Group:


Introduction and quotation of Novartis shares:

The Novartis share price is quoted on the SIX Swiss Stock Exchange. Its shares are also included in the calculation of the Stoxx Europe 50 stock market index.


Stock market data

To go further and thereby enable you to better understand the position Novartis holds on the stock markets we offer you the opportunity here to learn more general information that is still however important relating to this company and its share price on the stock markets.


Economic history

To understand the events that have influenced the historical technical analysis of the Novartis share price it is advisable to review the economical and financial history of this company over the last few decades. To assist you here are the significant dates and events you should be aware of.

Novartis came into being following a merger between Sandoz and Ciba-Geigy in 1996. This company has been entirely dedicated to the health sector since its beginning.

All you simply need to do now is combine this important information and major events with events from the historical stock market charts of Novartis shares to examine how they can influence this share price. In this way you can use the information obtained when preparing a fundamental analysis for anticipating future movements.


The advantages and strengths of Novartis shares as a stock market asset :

First of all, of course, the international dimension of the company is a strength. The Novartis Group has pharmaceutical operations in no fewer than 140 countries around the world, protecting it from potential risks associated with a single geographic region.

It should also be noted that the core business of Novartis is in a sector which is particularly valued for its very broad market, namely pharmaceuticals. However, the Group has diversified its products within this sector with medical products as well as vaccines, consumer health products, generic pharmaceuticals and animal health and veterinary care products. In this way, it is multiplying its targets and areas of intervention.

Thanks to the Novartis Biotechnology subsidiary, the Novartis group is a true leader in its field of activity, conducting a great deal of research in order to develop increasingly effective treatments. Of course, the group protects its most innovative products by means of patents in order to be the only one to be able to exploit them.

Novartis also tends to develop its activities through a very important policy of mergers and acquisitions. Novartis regularly acquires companies specializing in various fields, thereby strengthening its brand and expanding the scope of its activities.

The group also enjoys a good brand image with the general public thanks to various initiatives that have been hailed by critics. These include corporate wellness, which was the group's first specialized health initiative, but also its commitment to the Convention on Biological Diversity, or CBD, which guarantees continued access to biological resources in developing countries for research and development purposes.

It is also worth noting that Novartis is a company that is valued by its customers, having been named one of the world's most respected companies in 2005, which continues to give Novartis a high level of trust from its major customers.

Finally, the final advantage of the Novartis Group is, of course, its workforce. Today, the company employs more than 120,000 people around the world who help develop new products and bring them to market.


Disadvantages and weaknesses of the Novartis share as a stock market asset :

First of all, it should be recalled that with regard to the brand image of this company, Novartis has been subject to some controversy with regard to the advertising of some of its products, which may have undermined the confidence of the general public.

The group also encountered some problems after the introduction of certain restrictive laws in India concerning the patenting of pharmaceutical products. Novartis has a significant presence in the Indian market.

Another weakness is a particularly high cost structure. The company's highly diversified product lines also lead to an increase in the necessary production structures. This represents a significant cost for the group. The group has to wait a few years before it is able to cover the investments made and start to generate profits on some new products.

Finally, although the pharmaceuticals sector is considered to be a very buoyant sector in the long term, the cyclical nature of some of the group's activities must also be taken into account. This applies in particular to products that are designed to meet very current needs and which could therefore become obsolete in the future. Some of these products are frequently abandoned at an advanced stage of development because they no longer find a target on the market. These product discontinuations also result in substantial losses for Novartis, which has had to invest substantial amounts in the initial development of some of these products.

Although the faults of this stock seem to be less numerous than its qualities, you should be inspired by them to carry out your analyses of this stock since they can have a non-negligible influence on its medium or long term evolution on the charts.

Frequently Asked Questions

How best to follow the progress of the Novartis share price?

Of course, the best way to follow the progress of the Novartis share price is to consult the stock market charts in real time. These charts can be viewed on specialised stock market websites, on the Novartis company website in the section reserved for investors, or on a trading platform provided by an online broker. We particularly recommend the charts that enable the display of technical indicators and the customisable timelines.

Novartis shares are traded on which financial marketplaces?

The Novartis share price is quoted on the Swiss stock markets. More precisely these assets are traded on the SIX stock exchange which is the major financial marketplace of this country which is also the stock market where you can follow trading in this asset. It should however be noted that the American Depositary Receipts, or ADRs, for this asset are however quoted on the New York Stock Exchange, or NYSE, in the United States.

Is it possible to consult the financial history of the Novartis Company?

Investors interested in Novartis Company shares can benefit from access to lots of information on the company website. From there it is in fact possible to view the annual and quarterly financial results as well as historical data over a number of years. You will also find significant press releases, company announcements and publications and the historical dividend details.

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Trade in Novartis shares!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.