This Pharma Stock Is Still a Strong Buy After Trump’s Executive Order

The pharmaceutical sector has been buzzing with news lately … from tariff threats to executive orders, and ongoing debates about who should foot the bill for innovation. 

I think one stock stands out in the middle of this storm, for offering both stability and growth … and it’s Novartis (NYSE: NVS), which has a Zen Rating of A. 

Not only is it our #1 ranked stock among general drug manufacturers, but I also think its European headquarters uniquely position it to navigate any coming policy shifts with resilience. Here’s why. 

Is Trump’s New Order “Game Over” For Big Pharma?

President Trump’s latest executive order on drug pricing, aiming to implement “most favored nation” pricing, has put renewed pressure on U.S.-based pharmaceutical companies. This policy seeks to tie U.S. drug prices to those paid in other developed nations—often dramatically lower (30-80%) than what Americans currently pay. 

While it’s uncertain whether this policy will stick (a similar attempt failed in Trump’s first term), the market is already reacting.

Here’s where Novartis holds a key advantage. As a Swiss-based pharma giant, NVS is largely insulated from the direct financial risks tied to U.S. regulatory changes. And while tariffs remain a potential headwind, Novartis has already diversified its manufacturing and R&D footprint globally, reducing its reliance on any one market. 

Even better, it’s been actively pushing for higher price alignment in the EU — arguing that European drug prices should move closer to U.S. net levels. If successful, this would directly benefit Novartis’ top and bottom line.

NVS Has A Growing Pipeline

Meanwhile, the U.S. remains a profitable market for Novartis, but it’s not the company’s only growth engine. The company is expanding aggressively in emerging markets like India:

Source: Forbes

Plus, it’s continuing to lead in high-growth therapeutic areas like oncology, gene therapy, and immunology. 

Its robust pipeline includes over 150 active projects in clinical development, providing a clear path for future growth regardless of policy turbulence.

And while U.S. politicians argue over drug pricing policies, Novartis quietly continues to deliver results. The company recently posted strong earnings, raised its dividend, and continues to execute on its strategy of shedding non-core assets to focus on high-margin, high-growth products.

Novartis also has strong cash flow yield, free cash flow to price, and price-to-earnings growth (PEG) ratio, which is a metric that balances price-to-earnings with growth expectations. That’s why it scores a B for Value according to our Zen Component Grades. 

NVS also scores a B in Safety, Financials, and AI. You can see how it scores across other Component Grades by clicking here.  

Bottom Line

In short, while the drug pricing headlines may spook investors, Novartis offers a rare combination of policy resilience, geographic diversification, and pipeline strength. If you’re looking for a pharmaceutical stock that can weather political noise and deliver consistent returns, NVS may be the safest—and smartest—bet on the table.

👉 Want to find more top-rated pharma picks? Check out our full list here.

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