Novartis: A Deeply Undervalued Buy At $54
Novartis (NVS) has recently completed its acquisition of Fougera Pharmaceuticals through its own generic division Sandoz. The move has strengthened its position in diversification over other competing companies. This provides a competitive advantage to Novartis in global competition, also. The stock is currently trading around $54 per share, which I think is highly undervalued. I sense a signal of strength for Novartis in this acquisition news, but also in its drug development news and I predict strong growth of company coming soon.
Healthcare has been a busy bee with mergers and acquisitions globally. In April, the industry made about 200 deals totaling more than $33 billion. No other sector could even come near to it in terms of buyouts and sell-offs. Furthermore, that number does not include Pfizer’s (PFE) $11.8 billion sale of its infant nutrition business to NestlÃ©. The acquisition ticker has been busy. Just last week, Watson Pharmaceuticals (WPI) acquired Actavis in a $5.6 billion deal, positioning the combined company as the third largest generics maker company with respect to sales. Meanwhile, AstraZeneca (AZN) acquired US Biotechnology Company Ardea Biosciences in a $1.3 billion deal and Amgen (AMGN), the US biotechnology group, paid $700 million for control of pharmaceutical company Mustafa Nevzat – a Turkish generic drugs company. Needless to say, the industry has been keeping busy.The acquisition comes at a telling time for Novartis. The company reported a first quarter profit slide 8% on slumping sales of its over the counter medicines and top selling drug Diovan.To continue reading, click here.