Novartis Shares Plunge 3.17% Amid Industry Challenges

Novartis shares dropped 3.17% in pre-market trading on May 12, 2025, amid broader market concerns and specific challenges facing the pharmaceutical industry.

Novartis, a Swiss pharmaceutical giant, has reaffirmed its commitment to producing essential medicines for diseases like malaria and leprosy, despite global health funding constraints. The company produces nearly 28 million treatments for malaria annually, primarily sold at non-profit prices to countries and organizations, including the U.S. President's Malaria Initiative (PMI).

Dr. Lutz Hegemann, Novartis' global health president, emphasized the company's dedication to maintaining production levels, even in the face of reduced orders due to funding cuts. He highlighted the importance of creative solutions to ensure that medicines reach patients, especially in light of recent disruptions in the supply chain.

Novartis is also increasing its investment in research and development for neglected tropical diseases. By the end of 2025, the company aims to double its initial investment to $490 million, focusing on developing treatments for dengue fever, leishmaniasis, Chagas disease, and neonatal malaria.