NVSEF - Novartis - No Need To Rush Buying This Broadly Diversified Swiss Quality Business
- Novartis is a large cap pharma company from Switzerland with a portfolio that is broadly diversified both in terms of products and in terms of geography.
- Its three top-selling drugs account for only 17% of 2020 net sales, and Novartis typically generates less than 40% of total sales in the United States.
- For a company that is significantly dependent on low-margin generics and biosimilars (i.e., 20% of total net sales), its profitability appears reasonably high.
- Historical sales and FCF growth are uninspiring, as is the current valuation at $88 per ADR.
- Investors who only want to own a single pharmaceutical company are probably better served with a stake in Roche at the right valuation.
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Novartis - No Need To Rush Buying This Broadly Diversified Swiss Quality Business