Novartis Shares Plunge 4.38% Amid Biotech Investments

Novartis shares dropped 4.38% in pre-market trading on April 9, 2025, marking a significant decline in the company's stock value.

Novartis has been actively involved in the development of biotechnology, particularly in the fields of CGT, ADC drugs, and synthetic biology. The company has been investing in and laying out strategies in these areas since 2020, with a focus on siRNA base fragment synthesis for CGT business, payload and linker technologies for ADC drugs, and various biotechnological and chemical synthesis techniques for synthetic biology. These advancements have positioned Novartis as a key player in the CDMO sector, with the potential to become a significant contributor to the industry's growth.

Additionally, Novartis is engaged in projects related to hepatitis B, including the development of raw materials and formulations for treating chronic hepatitis B. The company's CDMO business has also gained traction, with its subsidiary, Wannan Meinuo Pharmaceutical Co., Ltd., serving as the core base for this division. The subsidiary has been fully controlled by Novartis since 2022 and has initiated the construction of its second-phase project in 2023.

Furthermore, Novartis has expanded its reach into the pet health sector through a strategic partnership with a major multinational pharmaceutical company, Merck, in 2021. This ten-year CDMO strategic cooperation agreement covers pet drugs, veterinary drugs, and animal health products, further diversifying Novartis' portfolio and strengthening its position in the global market.