5 Most Valuable Companies in Europe

3. Novartis AG (NYSE:NVS)

Market Cap: $227 billion
Revenue: $49.90 billion

Another pharmaceutical company that has made the list is Novartis AG (NYSE:NVS) which is based in Basel, Switzerland. This mega-cap company ranks third  in the list of the 10 most valuable companies in Europe.

Novartis is involved in the development and manufacturing of healthcare products. Recently, it has developed an antiviral medicine against COVID-19 and is also working on the development of an oral inhibitor that could have long-term efficacy against the coronavirus. Novartis AG (NYSE:NVS) is also looking to enter mRNA technology. The company reported Q1 sales for FY 2021 amounting to $12.4 billion which was a 1% year over year increase. Net income totaled $2.1 billion while the EPS was $0.91 during the quarter.

Wall Street analysts have been bullish on Novartis AG (NYSE:NVS) as the company has already gotten six major drugs approved over the past three years. Currently, it is involved in over a dozen clinical trials.

Oakmark Global Fund highlighted a few stocks in its Q4 2020 investor letter, and Novartis AG is one of them. Here is what the fund stated:

“Novartis is one of Europe’s largest pharmaceutical companies and possesses a highly diversified portfolio of innovative products. Its share price underperformed both the broader market and its pharma peers during 2020, largely due to a few disappointing late-stage trials and the company’s lack of Covid-19-related therapeutics or vaccines. These short-term issues provided us with an attractive entry point to invest in a leading pharmaceutical franchise with compelling economics. We estimate that the market is currently ascribing almost no value to Novartis’ pipeline despite the company’s excellent track record in new drug development. We expect that Novartis will deliver mid-single-digit, top-line growth and expand margins over the next five years as a result of its cost-savings plan. The company possesses one of the most diversified product portfolios in the pharma industry with 15 $1b+ compounds, which reduces its reliance on any single compound.”