NEW YORK (TheStreet) -- Novartis AG (NVS - Get Report) shares are up 0.2% to $99.36 in early market trading on Wednesday after the drug manufacturer won Food and Drug Administration for its heart failure treatment Entresto.
The company had previously stated that it expected regulatory approval by August.
The drug effectively reduced the rate of death and hospitalization from heart failure, and could be one of the biggest drug launches this year, according to Reuters.
Analysts have a consensus annual sales estimate of $4.4 billion by 2020, according to Thomson Reuters Cortellis.
Novartis announced that the twice a day two-in-one pill has been priced in line with similar cardiovascular treatments at $12.50 per day.
TheStreet Ratings team rates NOVARTIS AG as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOVARTIS AG (NVS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: NVS Ratings Report