Morgan Stanley: Novartis' performance in 2026 is expected to be slightly weak in terms of profitability.

Morgan Stanley analysts Thibault Boutherin and Sarita Kapila wrote in a research report that Novartis's performance expectations this year were somewhat soft in terms of core pre-tax profits. They stated that the Swiss pharmaceutical company also reported slight delays in some trial results, which could lead to its stock underperforming the market. These analysts added that the company's forecast for a decrease in core pre-tax income "reflects the impact of [loss of patent exclusivity] and the expected profit dilution from the acquisition of Avidity."