Benzinga | Sep 20, 2021 02:30PM EDT

Why Did Deutsche Bank Downgrade This Big Pharma Stock?

* Deutsche Bank has downgraded Novartis AG (NYSE:NVS) to Sell from Hold with a price target of CHF 70, down from CHF 80.

* Analyst Emmanuel Papadakis sees "grounds for outright caution near term" with Opthalmology looking structurally challenged.

* He also sees pressure mounting on Cosentyx and ongoing weakness in oncology.

* There are limited reasons to assume a sharp recovery in specialty care in the short term given Covid variant concerns and Novartis' pipeline slate is "thinning," Papadakis tells investors in a research note.

* Earlier today: Novartis' Kisqali Combo Therapy Extends Survival By One Year In Breast Cancer Patients.

* Novartis collaborated on the HARMONIA Phase 3 head-to-head study of Kisqali (ribociclib) versus Pfizer Inc's (NYSE: PFE) Ibrance (palbociclib), both in combination with endocrine therapy.

* The trial will include patients with hormone receptor-positive, human epidermal growth factor receptor 2-negative (HR+/HER2-) advanced or metastatic breast cancer with a HER2-enriched (HER2E) intrinsic subtype.

* Related: Novartis's Kymriah Flunks In Late-Stage NHL Study.

* The primary endpoint is progression-free survival (PFS), and the study will evaluate if Kisqali positively alters tumor biology, enabling a better response to endocrine therapy than Ibrance.

* Enrollment will begin in Q1 2022.

* Price Action: NVS stock is down 1.56% at $82.18 during the market session on the last check Monday.