Novartis shares surged to a record high on Tuesday, defying a broad market downturn as investors reacted to positive Phase III study results for the company’s oral multiple sclerosis drug Remibrutinib.
The Basel-based pharmaceutical group’s stock closed 6.3% higher at 130.96 Swiss francs, briefly touching an all-time peak of 132.48 francs. The advance contrasted with declines in major global benchmarks, including the STOXX 600 (-0.6%), Nikkei (-2.7%) and S&P 500 (-0.7%), helping lift Switzerland’s SMI into positive territory.
The catalyst was data from the Remodel-1 and Remodel-2 trials, which showed Remibrutinib significantly reduced annualized relapse rates versus Sanofi’s Aubagio, lowered inflammatory brain lesions on MRI scans and slowed physical disability progression. The drug’s safety profile showed no signs of hepatotoxicity. Analysts at Jefferies estimate peak sales could exceed $3 billion, while Vontobel revised its risk discount from 50% to 20% based on expected peak revenue of $1 billion.
Fundamentally, the results underscore Remibrutinib’s substantial commercial potential, with analysts noting potential to challenge Roche’s blockbuster multiple sclerosis therapy Ocrevus. Further details are expected at the MSToronto2026 conference from October 21-23.
Despite the rally, Novartis shares trade at an estimated forward price-to-earnings ratio of 16.7x, above the historical average. The stock offers a dividend yield of approximately 2.8% based on the last payout of 3.70 francs. Chart analysis indicates the 130-131 franc range now provides technical support, though the fresh all-time high at 132.48 francs remains the key resistance level.
Analyst sentiment remains mixed, with six buy ratings, 12 holds and two sell recommendations. The average 12-month price target stands at 126.50 francs, implying a potential pullback of about 3.5% from current levels. Investors are set to focus on margin trends, core product revenue and updates on suspended cell therapy studies when the company reports third-quarter results on October 27.
The MSToronto2026 conference and Q3 earnings release are the next major catalysts for the stock.
