As published in PharmaNews.EU, Novartis presented its growth strategy in healthcare to the analysts last week. CEO Joseph Jimenez stated "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."
Novartis has four features to its plan to drive growth:
- Diversified holdings with leading businesses in growing healthcare segments - pharmaceuticals, eye care, generics, vaccines & diagnostics and consumer health
- By 2015, the pharmaceutical specialty and oncology portfolio is expected to account for 75 percent of sales
- Strengthen leadership in biosimilars and first-to-market launches to drive performance in Sandoz
- Meningococcal vaccines accelerating growth in vaccines business
Novartis expects to continue to invest in the innovative R&D at the high-end of the industry for the next five years - at least. It also expects to strengthen its commercial position in the fast-growing BRIC countries. It's innovation position is enviable in this time of patent cliffs for many of its top competitors. Novartis can boast:
- Pipeline contains 142 projects, with more than 35% in Phase III or beyond
- Planning 30 regulatory submissions in the next 2 years - by the end of 2012
- Leads the industry in NMEs with 55 in clinical development and enjoys 50% success rate in Phase II
- Industry leading vaccine pipeline featuring 17 vaccine candidates in various clinical stages - lead by flu and meningococcal vaccines
- Sandoz generics business enjoys a 50% share in regulated markets
Beyond this investment in R&D and emerging markets, Novartis also plans to cut costs in its supply chain, marketing, sales, and in procurement. It also plans to create Centers of Excellence in Manufacturing with a goal of getting its capacity utilization rates up to 80%. Money that is saved will be reinvested in more innovation and growth.
Posted by Bruce Lehr November 23rd 2010.