Is Novartis Stock Halal?

Is Novartis Stock Halal?

How much of Novartis’ revenue comes from haram?

Novartis earns its revenue from the following revenue sources:

  • Innovative Medicines

Includes prescription medicines for ophthalmology, neuroscience, immunology, hepatology, dermatology, respiratory, established, cardiovascular, renal, and metabolism medicine products. 

  • Sandoz

Includes active pharmaceutical ingredients and intermediates such as antibiotics, proteins, and biotechnology manufacturing services. 

The contributions from each of Novartis revenue segments in their 2020 annual report were as follows:

Practical Islamic Finance concludes:

None of Novartis’ revenue comes from anything inherently haram.

Does Novartis rely on interest to operate?

According to the company’s annual report for the fiscal year ended December 31, 2020 (Numbers in thousands, U.S. dollars):

Interest Income: $91,000

Interest Expense: $869,000

Total Expenses: $39,746,000

Total Revenue: $49,898,000

Interest Expense / Total Expense: 2.19%

Interest Income / Revenue: 0.18%

Practical Islamic Finance concludes:

Riba is used but not relied upon in Novartis’ operations.

What is Novartis’ Environmental, Social, and Governance (ESG) impact?


In 2020, Novartis achieved 100% renewable electricity usage in their European operations.

In addition, Novartis reduced its carbon emissions, waste disposal, and water consumption compared to 2019 by around 16%, 21%, and 25%, respectively.


In response to the Covid-19 pandemic, Novartis donated $40 million to support communities worldwide impacted by the pandemic.

In addition, Novartis has a high Glassdoor rating of 4.2 out of 5.0 from over 5,000 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.


Novartis has a checkered past with allegations of bribery of government officials and doctors to steer patients towards their company’s drugs. 

Since then, Novartis created an ESG Management Office assigned to improve oversight and facilitate implementing ESG measures into its business operations.

Practical Islamic Finance concludes:

Given Novartis seems like it’s on the right course now, we are willing to give them the benefit of the doubt while recognizing that continued monitoring is required.

Novartis has a net positive ESG impact.

Comfort Rating

From Novartis’ business, financial and ESG reviews, Practical Islamic Finance rates Novartis stock as:

Comfortable to invest in from a Halal perspective.


Novartis Ag (NVS) 10K Annual Reports & 10Q SEC Filings


Novartis Wiki

Novartis in Society ESG Report 2020  

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