Novartis outlines business strategy
pharmafile | November 18, 2010 | News story | Research and Development, Sales and Marketing | Novartis, business development, pharma strategy
Novartis has outlined its long-term strategy for managing a number of key patent expiries.
The Swiss-based pharma firm plans to consolidate its recent acquisitions, but also continue its ‘de-risking’ strategy. It currently faces the patent expiry on its biggest seller Diovan, which made $1.5 billion in the last quarter.
Novartis chief executive Joseph Jimenez, said: “Novartis has leading businesses in fast growing segments of healthcare, and by focusing on our strategic priorities we are well positioned to succeed in a rapidly changing healthcare environment.
“Novartis remains committed to the core strategy of focused diversification in high-growth healthcare segments. We are leveraging our core competencies in scientific discovery and development to continue driving innovation, growth and productivity across the businesses.”
Jimenez added: “I believe that Novartis is among the best positioned companies in the industry to leverage this increase in demand and address the needs of patients and payers around the world.”
The recent acquisition of eye care specialist Alcon has made Novartis one of the world’s largest ophthalmology specialist and complemented its biggest selling ophthalmic drug Lucentis. The firm hopes this will deliver long-term sustainable revenue.
The company also believes its generics firm Sandoz is well positioned to “extend its leadership in this area” while also “strengthening its leadership in differentiated generics”, such as oncology injectables and respiratory treatments.
Jimenez was keen to stress his company’s commitment to R&D, saying it has the “most robust pharmaceuticals pipeline”, with more than 142 projects in clinical development, of which more than 35% are in phase III or at the registration stage.
The company said that the key to offsetting patent expirations would come via “portfolio rejuvenation” through launches of new medicines, while increasing its specialty and oncology products in its portfolio by 10% to three quarters of expected pharma sales in 2015.
It will also rely heavily on its recently approved oral MS drug Gilenya to offset patent expiries, with analysts estimating this novel treatment could reach peak sales of $2.5 billion a year.
Novartis aims to strengthen its commercial position in emerging markets and said it aims to develop “significant businesses” in China, Russia, Brazil and India, the so-called BRIC countries.
Ben Adams
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