Novartis Shares Plunge 4.24% Amid Autoimmune Drug Competition

On April 7, 2025, Novartis experienced a 4.24% drop in pre-market trading, reflecting investor concerns and market dynamics.

Novartis has a history of targeting top-performing drugs in the autoimmune disease sector. The company recently initiated a Phase III trial comparing its drug Remibrutinib to Dupixent, a leading drug in the field. This is not the first time Novartis has targeted a top product; previously, its drug Secukinumab outperformed competitors from AbbVie and Johnson & Johnson in head-to-head trials, establishing a strong position in psoriasis treatment.

Despite these efforts, Novartis has yet to break into the top three in the autoimmune disease market. The company's 2024 revenue from this sector was $92.93 billion, falling short of the $100 billion mark. Novartis' key products in this area include Cosentyx, Xolair, and Ilaris, with Cosentyx showing particular promise as a potential blockbuster drug.

Novartis is also facing stiff competition from other pharmaceutical giants like AbbVie, Johnson & Johnson, and Sanofi. These companies have developed "super blockbuster" drugs that have driven their revenues well above $100 billion. For instance, Sanofi's Dupixent generated $142 billion in sales in 2024, making it the new leader in the autoimmune disease market.

In response to these challenges, Novartis is exploring new strategies to bolster its position. The company has submitted applications for new indications for its drug Remibrutinib and has acquired KRP-M223, a potential new blockbuster drug, from Kyorin Pharmaceutical. These moves are part of Novartis' broader strategy to strengthen its portfolio and compete more effectively in the autoimmune disease market.