Novartis AG (NVS)

Galvus, a diabetes drug that was expected to be a high volume seller (billions) for Novartis, has been delayed one to two years while further clinical trials are conducted. When it enters the market, Galvus will have to compete against Merck's already-established diabetes medication Januvia.

Standard & Poor’s cut its AAA rating on Novartis AG (NVS) to AA- after the firm announced it would finance its acquisition of Alcon Inc. (ACL) with new debt, Bloomberg News reported. "Novartis’ lack of commitment to the former AAA rating is demonstrated" by the use of debt to fund the Alcon purchase, S&P credit analyst Olaf Toelke said in the statement announcing the downgrade. "This action is a marked deviation from the group’s former conservative financial policy."

The patent on key ingredients in Lotrel will expire within the year and generic competitors are expected to enter the market.

Over the past few years there have been increasing federal and state regulations on the pharmaceutical industry in the way it contacts physicians and advertises. This limits sales and building of brand loyalty and could hurt Novartis and other pharmaceuticals’ profits.