Berenberg Cuts Novartis Price Target After Recent Pipeline Misses; Hold Rating Kept

07:27 AM EDT, 09/11/2026 (MT Newswires) -- Berenberg reduced its price target and earnings forecasts for Novartis (NOVN.SW), saying the Swiss drugmaker's pipeline premium was lowered following two late-stage trial failures. "Arriving a matter of days apart, Novartis has now provided updates for all three of its highly anticipated P3 readouts this year. Remibrutinib multiple sclerosis data were positive but del-desiran (DM-1) and pelacarsen (Lp(a)) failed to hit study primary endpoints. Investor expectations for all three assets were high prompting a sharp negative (but fair) share price reaction. Meanwhile, Novartis maintains its 5-6% 2025-2030 sales [compound annual growth rate] guidance. We land below this at 4%," analysts said Friday. "We reiterate our Hold rating and reduce our price target to CHF105 [from CHF120] to reflect pipeline updates and a lower P/E relative assumption." Berenberg also trimmed its sales, EBIT and EPS forecasts for 2027 and 2028, while keeping those unchanged for 2026. The del-desiran miss came as a "big surprise" in light of "promising" early data, the research firm said, noting that the drug candidate was the lead asset in Novartis' $12 billion purchase of Avidity Biosciences. Following the trial results, Berenberg now expects the deal's return will fall below the cost of capital. Key pipeline catalysts for Novartis include phase 3 remibrutinib in hidradenitis suppurativa and phase 2 QCZ484 in hypertension data expected by the end of 2026, followed by phase 3 results for ianalumab targeting lupus and abelacimab for thrombosis in the first and latter halves of 2027, respectively, Berenberg said.