Novartis

NOVARTIS

Novartis was born in 1996 from the merger of Ciba-Geigy and Sandoz

Novartis is a Switzerland based holding company in the research, development, manufacture and marketing of branded drugs, generic pharmaceutical products, preventive vaccines, diagnostic tool and consumer health products. The company operates in more than countries across the globe. It is headquartered in based, Switzerland and employs 96 717 people.

Novartis is the third pharmaceutical company in the world, second producer génériques2 drugs, holds 6% of the global vaccine market.

They unique portfolio focuses on science-based healthcare sectors that are growing rapidly, reward innovation, and enhance the lives of patients. Novartis is the only company with leading positions in each of these key areas:

• Pharmaceuticals: innovative patent-protected medicines

• Alcon: global leader in eye care with surgical, ophthalmology and consumer products

• Sandoz: affordable, high-quality generic medicines and biosimilars

• Consumer Health: self-medication products and treatments for animals

• Vaccines and Diagnostics: vaccines and diagnostic tools to protect against life-threatening diseases

The Swiss group was born from the merger of Ciba and Sandoz laboratories in 1996. Its CEO, Daniel Vasella, seeks to develop a culture of performance.

Novartis gets its name from the Latin novae artes meaning new address

SWOT ANALYSIS

Internal Strength

• Diversified business model compising core Rx Pharmaceuticals unit supported by generics, vaccines, consumer healthcare and ophthalmology offerings.

• Core businesses in pharmaceuticals, vaccines, consumer health, generics and animal health

• Establish reputation for developing first/best in class Rx pharmaceutical products that erect high barriers to entry for would be competitors.

• Broad product portfolio with lower “blockbuster dependency” than many rivals.

• Strong roll-out of new product launches over past few years, which has supported reputation for successfully targeting. Weakness

• Failure of Galvus to position Novartis in diabetes market.

• Controversies regarding their advertising of certain products affected brand image

External Opportunity

• Revenue growth opportunity attached to Sandoz ( generics) and vaccine elements of business will dilute patent expiry risk inherent to Rx portfolio

• Potential to establish Sandoz unit as leading global biosimilars manufacturer.

• Strong late stage R&D pipeline that should expand Novartis’s therapeutic focus Threats

• Patent expiry fo Diovan/ Co Diovan franchise in 2011/12. Longer term risk of patent expiry for Glivec (in 2015)

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