Is NVS (Novartis AG) halal?

Q: Is NVS (Novartis AG) halal?

HALAL: Swiss pharmaceutical — permissible drug development. Novartis' 2025 Form 20-F and annual report report US$110,949 million of assets, US$35,457 million of debt and leases, US$11,435 million of cash, US$155 million of marketable securities, US$8,937 million of receivables and US$56,674 million of revenue. Debt/assets is 31.96%, liquidity/assets is 10.45%, receivables-plus-cash/assets is 18.36% and disclosed interest received is 0.55% of revenue; the financial screens pass, while product and revenue allocation remains qualitative.

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NVS

Novartis AG

HALAL — DATA INCOMPLETEstock

Is NVS Halal?

Swiss pharmaceutical — permissible drug development.

What You Should Know

Novartis' 2025 Form 20-F and annual report report US$110,949 million of assets, US$35,457 million of debt and leases, US$11,435 million of cash, US$155 million of marketable securities, US$8,937 million of receivables and US$56,674 million of revenue. Debt/assets is 31.96%, liquidity/assets is 10.45%, receivables-plus-cash/assets is 18.36% and disclosed interest received is 0.55% of revenue; the financial screens pass, while product and revenue allocation remains qualitative.

⚠️ Concerns

•Minor interest income
•Pharmaceutical pricing debates
•Product-level prohibited revenue is not separately disclosed

Current quantitative Sharia screen

Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-15.

USD · millions

Interest-bearing debt / assets

31.96%Within limit

Below 33.333% under FTSE Yasaar

35,457 / 110,949

Cash + interest-bearing securities / assets

10.45%Within limit

Below 33.333% under FTSE Yasaar

11,590 / 110,949

Receivables + cash / assets

18.36%Within limit

Below 50% under FTSE Yasaar

20,372 / 110,949

Non-compliant income / revenue

0.55%Within limit

No more than 5% under FTSE Yasaar

310 / 56,674

Methodology	Financial	Overall	What drives it
FTSE Yasaar v4.6, February 2026	Pass	Incomplete	Debt/assets is 31.96%, liquidity/assets is 10.45%, receivables-plus-cash/assets is 18.36%, and disclosed income is 0.55%; activity remains incomplete.
MSCI Islamic (total-assets series) October 2024 methodology	Pass	Incomplete	Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI limits; activity and purification remain incomplete.
Malaysia SAC financial ratios single 5% activity benchmark adopted November 2025	Pass	Incomplete	Debt/assets is 31.96% and liquidity/assets is 10.45%; the activity calculation is incomplete and this is not an official SAC classification.
Market-cap denominator methods MSCI M-Series, S&P and Dow Jones methods differ	Not calculated	Incomplete	A licensed historical market-cap series is not stored; filing-based ratios pass but activity and purification remain incomplete.

FTSE Yasaar

v4.6, February 2026

Financial: Pass
Overall: Incomplete

Debt/assets is 31.96%, liquidity/assets is 10.45%, receivables-plus-cash/assets is 18.36%, and disclosed income is 0.55%; activity remains incomplete.

MSCI Islamic (total-assets series)

October 2024 methodology

Financial: Pass
Overall: Incomplete

Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI limits; activity and purification remain incomplete.

Malaysia SAC financial ratios

single 5% activity benchmark adopted November 2025

Financial: Pass
Overall: Incomplete

Debt/assets is 31.96% and liquidity/assets is 10.45%; the activity calculation is incomplete and this is not an official SAC classification.

Market-cap denominator methods

MSCI M-Series, S&P and Dow Jones methods differ

Financial: Not calculated
Overall: Incomplete

A licensed historical market-cap series is not stored; filing-based ratios pass but activity and purification remain incomplete.

Business-activity disclosure

Novartis develops and manufactures medicines and healthcare products, a generally permissible healthcare activity.

Limitation: The group reports a broad healthcare portfolio but does not reduce every product, licensing and customer stream to a universal prohibited-revenue numerator.

Purification

Novartis discloses interest received, but no scholar-approved purification percentage or complete prohibited-revenue numerator is provided.

Inputs, assumptions and primary sources

Amounts are USD millions from Novartis' 2025 annual reporting; the 20-F and annual report are cross-checked.
Financial debt is US$27,935 million non-current plus US$5,602 million current; lease liabilities of US$1,657 million non-current plus US$263 million current are included for a conservative debt-plus-leases input.
Cash is US$11,435 million, marketable securities/time deposits/derivatives are US$155 million, and receivables are US$8,937 million.
Net sales plus other revenues are US$56,674 million. Interest received of US$310 million is used as the disclosed non-compliant-income proxy.

U.S. Securities and Exchange Commission: Novartis AG Form 20-F for fiscal year ended December 31, 2025 Novartis: Novartis Annual Report 2025 FTSE Russell: FTSE Yasaar Global Equity Shariah Index Series Ground Rules MSCI: MSCI Islamic Index Series Methodology Securities Commission Malaysia: Shariah-Compliant Securities Screening Methodology

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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