Halister News

(Bloomberg) -- Shares rise as much as 2.4%, leading the SXDP after its heart failure drug Entresto got a Class 1 recommendation in both U.S., EU.

• Jefferies (buy, PT CHF100) says U.S. and EU heart failure recommendations are stronger than expected and on a faster timeline than expected in the U.S.; sees as “significant positive” for Novartis and Entresto
  • Says decision should impact prescription rate over next few months; ests. $3.99b rev. by 2020
• Bloomberg Intelligence says co.’s est. for >$5b sales potential now supported by strong recommendations from professional associations

DATA

• Stock has risen 4.6% month-to-date vs a 1.2% rise in the Stoxx 600 Health Care index; is down 11.8% YTD vs a 9.3% fall in the SXDP index
• Of 33 analyst ratings, 13 are buy, 19 hold, 1 sell, with an average PT of CHF85, implying ~11% upside