5 Pharma Companies Making Treatment for Opioid Overdose

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In this article, we discuss the 5 pharma companies making treatment for opioid overdose. If you want to read our detailed analysis of these stocks, go directly to the 10 Pharma Companies Making Treatment for Opioid Overdose.

5. Novartis AG (NYSE: NVS)

Number of Hedge Fund Holders: 19     

Novartis AG (NYSE: NVS) is a Switzerland-based biotechnology and pharmaceutical firm founded in 1996. It is placed fifth on our list of 10 pharma companies making treatment for opioid overdose. In 2019, Sandoz, a Novartis subsidiary, and Pear Therapeutics announced that they would begin selling reSET-O(TM), a drug developed by both firms for treatment of patients with Opioid Use Disorder. The companies had begun working on the drug in late 2018 and obtained approval for it from authorities in the US the next year. 

In earnings results for the second quarter, posted on July 21, Novartis AG (NYSE: NVS) reported earnings per share of $1.66, beating market estimates by $0.17. The revenue over the period was more than $12.9 billion, up over 14% year-on-year.

At the end of the first quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Novartis AG (NYSE: NVS), down from 23 the preceding quarter worth $1.6 billion.

In its Q4 2020 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Novartis AG (NYSE: NVS) was one of them. Here is what the fund said:

“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.”

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