Novartis "neutral"

01.12.06 - J.P. Morgan Securities

LONDON, December 1 (newratings.com) - Analysts at JP Morgan reiterate their "neutral" rating on Novartis AG (NOT). The 12-month target price is set to CHF74.

In a research note published this morning, the analysts mention that the company has shown healthy signs of pipeline progress, although concerns regarding Tekturna remain. The US approval for Tekturna is unlikely before the end of the year, the analysts say. The Aclasta estimates for 2007 have been raised from $500 million to $720 million, since Aclasta has a healthy profile of tolerability & efficacy, driven by long-term compliance benefits, JP Morgan adds.