A Look at Novartis AG (ADR) (NVS)’ Second Quarter

Pipeline possibilities
Looking to the pipeline for indications of what Novartis may have coming up shows four drugs currently under review by regulating agencies and a multitude more currently undergoing phase 3 trials.

AIN457 is the experimental drug that has great potential for Novartis. A recently completed phase 3 trial proved AIN457 to be more effective than Pfizer Inc. (NYSE:PFE) and Amgen, Inc. (NASDAQ:AMGN)‘s Enbrel at treating moderate to severe plaque psoriasis, a disease that affects about 1.5 million Americans. It is also being tested to treat rheumatoid arthritis, psoriatic arthritis, and multiple sclerosis among other diseases. Regulatory submission of AIN457 is expected in the second half of 2013.

Foolish takeaway
The Q2 results from Novartis were lukewarm, slightly exceeding expectations with a marginally improved outlook thanks to some good fortune. Moving forward, much of the pressure will be on the pharmaceutical segment to boost sales of its other offerings to offset the patent expirations of Zometa and Diovan. Watch for new drugs from the pipeline, coupled with increasing sales outside of Europe and the U.S., to be the source of this boost.

The article A Look at Novartis’ Second Quarter originally appeared on Fool.com and is written by Raymond Boisvert.

Raymond Boisvert has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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