Will This Send Novartis Stock Soaring?
Novartis (NYSE: NVS) has produced some uninspiring results on the markets. In five years, its share price has risen by just 8% while the Health Care Select Sector SPDR Fund has grown 50%. But that could change in 2020 and the years ahead as the underperforming stock's low price combined with some very bullish news could make a rally inevitable.
On Jan. 13, Novartis announced that its cholesterol drug inclisiran will be fast-tracked for review in Britain by the National Institute for Health and Care Excellence (NICE). If it's approved, that means patients in the U.K. with atherosclerosis, a form of heart disease that involves the buildup of plaque in the arteries, could have access to the drug as early as next year. It presents a significant opportunity in the region with the British health minister projecting that over the next decade the drug could help save 30,000 lives.
The drug has a lot of potential and it's a key reason that Novartis paid $9.7 billion to acquire The Medicines Company. The deal closed on Jan. 6, making the drug officially Novartis' property. Before the deal closed, The Medicines Company submitted a new drug application for inclisiran in the U.S.
Source Fool.com