Novartis Faces Patent Hurdles Ahead of Q2 Earnings

The Swiss pharmaceutical giant is currently navigating a transition period as it contends with generic competition for key revenue drivers. Entresto, Promacta, and Tasigna—drugs that previously anchored the company’s portfolio—lost U.S. patent protection last year, weighing on core operating profit forecasts, which consensus estimates peg at $5.31 billion against last year’s $5.925 billion.

Market attention is shifting toward the second half of the year, where analysts from Citi and Bank of America anticipate a recovery as the impact of patent expirations begins to stabilize in year-over-year comparisons. Investors remain focused on clinical trial readouts, particularly for Rhapsido in multiple sclerosis and del-desiran for myotonic dystrophy type 1. UBS analysts noted that the timing and management confidence surrounding these pivotal studies are critical, as the company seeks to replenish its growth engine through internal innovation and recent acquisitions like the deal for Avidity Biosciences’ del-desiran platform.