Novartis AG (ADR) (NYSE: NVS)
Novartis was off to an incredibly strong day in the market today, making its way to the top right from the beginning. However, minutes ago, that changed, and it changed in a big way. While the stock is still in the green, it’s falling off of highs relatively quickly. We believe we know why. Below, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see from NVS ahead.
What We’re Seeing From NVS
As mentioned above, Novartis was off to a very strong day in the market today. In fact, early on, the stock was trading up well over 3%. However, minutes ago, we watched as the stock started to spike downward. At the moment (10:24), NVS is trading at $73.23 per share after a gain of $1.95 per share (2.74%) thus far today.
Why Is The Stock Spiking Downward?
With such a strong day, a reversal and downward movement just weren’t expected. So why is this happening? What’s going on with NVS? Well, we did some digging and I believe we’ve figured it out. According to chatter in social media, a key member of management at Novartis received a subpoena with regard to generic pricing going back to 2012. The problem? No one knew. Sandoz failed to disclose the subpoena that was received over 6 months ago.
What We’ll Be Watching Ahead
Moving forward, the CNA Finance team will keep a close eye on NVS to see what news becomes available. At this point, we know that there was a subpoena, we know that it hasn’t been disclosed for more than 6 months, but we don’t know much about any other details. With that said, it’s too early to call this one, but things aren’t looking good for NVS.
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of The Blue Diamond Gallery]