2023-06-07 15:05:00 ET
Novartis (NYSE: NVS) is a company in transition. Over the past several years, the Swiss multinational pharma giant has been busy divesting key assets such as its eye care unit Alcon , trimming costs, and reducing staff in an effort to morph into a pure-play prescription drug company.
Now, Novartis is close to completing this long-winded transition with the upcoming spin-off of its generic drug business, Sandoz, later this year. Is the pharma titan's stock a top buy heading into this key milestone? Let's take a look at the drugmaker's strengths and weaknesses to find out.
Novartis sports both a strong balance sheet and credit rating. With a debt-to-equity ratio of 47%, Novartis' balance sheet isn't overly levered, especially compared to many of its big pharma peers. The company also exited 2022 with a respectable A1 rating on its long-term maturities from Moody's . Thus, Novartis has ample financial flexibility to engage in value-creating, business-development activity as opportunities arise.
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Is Novartis a Good Stock to Buy Right Now?