Novartis AG (Novartis) reported significant growth in total revenues in 4Q 09, exceeding our expectations. EBITDA margin as well as net margin exceeded our expectations in 4Q 09. We maintain our positive growth outlook for the company's Pharmaceutical segment and Research and Development (R&D;) pipeline, going forward. We also expect new products such as Lucentis, Exforge, Exjade, Reclast, Tekturna and, Afinitor to increase their contribution to total revenues, going forward....

Novartis new products are expected to ramp up Pharmaceutical business revenues, going forward. New products such as Lucentis, Exforge and others contributed 16% of revenues in 3Q 09 compared to 9% in 3Q 08. Moreover, positive clinical trial results for Tasigna indicate higher possibility of launching the product to treat patients who have been newly diagnosed with a form of chronic myeloid leukemia in early 2010....

In our 2Q 09 update report, dated 29 July 2009, we reiterated the Novartis AG (Novartis) ADR a BUY with a target price of US$54.78, representing an upside of 24%. The ADR achieved our target price on 24 November 2009, closing at US$55.30. Although the current market price no longer supports a BUY rating, we reiterate our BUY rating based on our positive outlook for the company. We will reassess the ADR rating in our 3Q 09 update report…