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. Company Key Facts. Formed in 1996 thru the merger of Sandoz and Ciba-GeigyCorporate Headquarters in Bazel, SwitzerlandEmploys more than 100,000 associates in over 140 countriesFour Major Operating Divisions:PharmaceuticalsVaccines
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1. NovartisPrep Session Presented by:
Mark Grossman
March 26, 2009
3. Notable Events (pre-2008) 2007 – Novartis is rated the No 1 pharmaceutical company in Fortune Magazine’s “World’s most Admired Companies” survey.
April 2006 – Novartis completes acquisition of Chiron Corporation thereby entering into the human vaccine market.
2005 – Novartis acquires North American OTC portfolio of Bristol-Myers Squibb. Later sold off Gerber baby products and Medical Nutritional Business (2007).
2001 – Purchased 33% interest in Roche Pharmaceuticals (now closer to 40% ownership)
4. Mission Statement “We want to discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering and to enhance the quality of life.
We also want to provide a shareholder return that reflects outstanding performance and to adequately reward those who invest ideas and work in our company.”
5. Recent Financial Performance 2008 Net Sales of 41.5 Billion USD (+9% from 2007)
2008 Operating Income of 8.96 Billion USD (+31% from 2007)
2008 Return on Sales of 21.8% (+3.8% from 2007)
Net Sales 2008: 41.5 Billion
2008 Spent 7.2 Billion USD on R&D (17.4% of Sales)
6. Product Pipeline and R&D Activities 152 current projects in phase 1 or later stage of development
93 New Molecular Entities (NMEs)
16 Drugs in phase 3 testing
7 NDAs filed of which 3 qualified for urgent FDA review status
Tekurna SPC - Hypertension
Galvus – Type 2 Diabetes
Afinitor – Renal cell cancer (lead indication), neuroendocrine tumors, solid tumors **
QAB149 – Chronic obstructive pulmonary disease
Menveo – Meningococcal meningitis vaccine **
ACZ885 - Cryopirin-associated periodic syndrome (CAPS, lead indication) rheumatoid arthritis, systemic onset juvenile idiopathic arthritis **
Certican – Prevention of organ rejection
** Under expedited FDA review
Alliances with approximately 70 companies
7. Notable Portfolio Expansions (2008) Purchased 25% ownership of Alcon Inc. (eye care pharmaceutical & surgical products) from Nestle for 10.4 Billion USD. Plans to purchase Nestle’s remaining Alcon stock in 2010 – 2011 giving Novartis a majority ownership (77%).
Purchased US biotech company Protez Pharmaceuticals and acquired the rights to PTZ601, antibiotic in phase 2 development, for the treatment of nosocomial infections.
Purchased Speedel Holding AG and acquired the rights to Tekturna/Rasilez (hypertension drug awaiting FDA approval).
Purchased Nektar Therapeutics pulmonary business unit, strengthening respiratory drug delivery capabilities (COPD).
8. Top Selling Pharmaceutical Products - Hypertension (5.7 Billion USD)
- Leukemia, gastrointestinal tumors, other rare forms of cancer (3.7 Billion USD)
- Cancers that have spread (or "metastasized") to the bones from solid tumors (1.4 Billion USD)
- Adjuvant treatment of postmenopausal women with hormone receptor-positive early breast cancer (1.1 Billion USD)
- Acromegaly, carcinoid tumors and other types of gastrointestinal neuroendocrine and pancreatic tumors (1.1 Billion USD)
9. Other Notable Pharmaceutical Products (New) – Osteoporosis, yearly infusion
(New, EU) – Type 2 diabetes, tablet
- Children and Adult AD / HD
(New) - Chronic iron overload in transfusion-related conditions, oral
- Mild to moderate forms of Alzheimer’s
- Parkinson’s disease
10. Vaccine & Diagnostics Division Products address more than 20 vaccine-preventable viral and bacterial diseases, as well as sophisticated blood-testing equipment.
Influenza , Meningitis, Rabies, Tick-borne encephalitis, Haemophilus influenzae type B (Hib), Polio, Diphtheria, Tetanus, Pertussis (whooping cough)
Automated blood assay equipment
Novartis Vaccines, the world’s fifth-largest vaccines manufacturer and the second-largest supplier of influenza vaccines in the US, focuses on creating innovative products to prevent influenza, meningitis and other diseases.
Contracts with the WHO and US Government
11. Vaccine & Diagnostics Division Currently undertaking four large capital expansion projects dedicated to increasing capabilities in Biotech production:
Holly Springs, NC ? 600 Million USD
Liverpool, England (Chiron site) ? 1 Billion USD
Marlburg, Germany ? 145 Million Euro
Rosia, Italy ? 40 Million Euro (Menveo Vaccine)
12. Sandoz - Generics Sandoz, a global generics leader, develops, produces and markets medicines that are no longer protected by patents, along with pharmaceutical and biotechnological active substances.
Sandoz offers patients approximately 1,000 molecules in over 5,000 forms worldwide.
Difficult to make generics: biosimilars, patches, inhalers, oral solids
Sandoz medicines are available to about 90% of the world’s population.
Sandoz reported generic pharmaceutical sales of USD 7.6 billion in 2008 and employs more than 23,000 associates in 130 countries.
13. Top Selling Consumer Health & Animal Products - Antifungal agent
- Fiber Supplement
- Pain Relief
- Skin Care Products
- Smoking cessation
- Children cold & cough
- Flea control for dogs
- Heartworm prevention
- Animal antibiotic
- Disposable contact lenses
14. Corporate Citizenship Estimated 850 million citizens benefited from Novartis products in 2008.
Novartis sponsored programs brought treatment to over 74 million patients throughout the world in 2008. Contributions valued at 1.26 Billion UDS (3% of Sales).
Coartem – Oral anti-malaria medicine developed for children
Infectious diseases (e.g. Influenza, Leprosy, TB, Fasciolasis)
Novartis’ Institute for Biomedical Research (NIBR), Institute for Tropical Diseases (NITB) and Vaccine Institute for Global Health (NVGH) conduct R&D activities dedicated to discovery of treatments for unmet or neglected medical conditions.
Parkinson's disease, Muckle-Wells syndrome, Dengue fever
15. International Activities Step up investments in Emerging Global Markets (EGM)
Current projected annual growth rate of 12%. Market is expected to represent 20% of global sales by 2020.
Biomedical R&D center under construction in Shanghai, China
OTC Market in Russia (intro 40+ products in the next 3 years)
Expand API Manufacturing in Resende, Brazil
Expand Manufacturing in Turkey
“Arogya Parivar” health initiative in India
16. Recent News February 13, 2009 - Sandoz has received final approval from the European Commission for its third biosimilar, “filgrastim”, paving the way for this important oncology medicine to be made available to patients across the European Union.
January 27, 2009 - Novartis and Medicines for Malaria Venture launch Coartem® Dispersible,launch the first ACT (artemisinin-based combination therapy) developed for children suffering from malaria in Africa.
January 22, 2009 - Novartis launches Extavia®, a new therapeutic option to help patients combat devastating symptoms of multiple sclerosis.
January 15, 2009 - US Department of Health and Human Services awards Novartis USD 486 million contract to build manufacturing facility (Holly Springs, NC) for pandemic flu vaccine.
17. Recent News December 19, 2008 - Glivec ® receives US approval as first treatment to reduce risk of cancer returning in patients with gastrointestinal stromal tumors.
18. Other References
Novartis 2008 Highlights *
Novartis 2008 Annual Report
www.Novartis.com