TABLE OF CONTENTS
I. INTRODUCTION 1
II. COMPANY HISTORY 1
III. CHIEF EXECUTIVE OFFICER 2
IV. MAJOR PRODUCTS 3
V. MAJOR COMPETITORS 5
VI. SALES HISTORY 6
VII. MAJOR FACTORS AFFECTING INVESTMENT POTENTIAL 7
VIII. STOCK PRICE DATA AND INVESTMENT ANALYSIS 8
IX. CONCLUSIONS & RECOMMENDATIONS 10
EXECUTIVE SUMMARY
This company profile provides a preliminary investigation and analysis of Novartis International AG, a multinational pharmaceutical company based in Basel, Switzerland. Novartis is one of ten companies the Investment Board will consider for further in-depth research for a multimillion-dollar investment.
Novartis was created in 1996 from the merger of two Swiss-based chemical/life sciences giants;
…show more content…
Additionally in 2003, Novartis acquired the worldwide adult medical nutrition business of Mead Johnson & Company, a subsidiary of Bristol-Myers Squibb. In 2004, Novartis acquired two generics companies: the Danish company Durasacan A/S from AstraZeneca plc and Sabex Holdings Ltd of Canada. In 2005, Novartis acquired Hexal AG and Eon Labs, creating the world leader in generics. Additionally in 2005, Novartis acquired North American OTC brand portfolio from Bristol-Myers Squibb, and divested its Nutrition & Santé unit. In 2006, Novartis acquired the California-based Chiron Corporation. As of April of this year, Novartis is reportedly selling off its non-healthcare businesses to Nestlé who has agreed to purchase Novartis ' medical nutrition business for $2.5 billion and its Gerber baby products business for $5.5 billion.
Currently, Novartis is comprised of four business divisions: pharmaceuticals, vaccines and diagnostics, Sandoz Generics, and consumer health. The company’s mission is to discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering and to enhance the quality of life.
III. CHIEF EXECUTIVE OFFICER
Dr. Daniel Vasella is Chairman and Chief Executive Officer of Novartis. He was appointed Chairman in 1999 and has served as CEO and executive member of the Board of Directors since the merger that created Novartis in 1996. Dr. Vasella is also a member of
There were two pharmaceutical companies that were looking for ways to expand globally to position themselves in a competitive advantage from their competitors. One was located in the United States, which was Eli Lilly and
CVS Health Corporation is an integrated pharmacy healthcare and head quartered in Woonsocket, RI. The President and CEO of CVS is Larry J. Merlo. The company has three segments, Pharmacy services, Retail pharmacy and Corporate. CVS was previously known as Caremark Corporation and the name was changed to CVS on September 3rd 2014.
U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the
Pfizer is the largest American pharmaceutical company and one of the largest pharmaceutical companies in the world. It competes with Merck and Glaxo, and markets such well-known medications as Celebrex and Viagra. However, the pharmaceutical industry as a whole has undergone changes in recent years with significant consolidation taking place and with increased scrutiny regarding the ways in which drugs are developed, tested and marketed. In addition, recent controversies have erupted regarding Merck's drug Vioxx, and Pfizer has been the target of unwanted publicity regarding its painkiller Celebrex. This research considers the strategic position of Pfizer, including its strengths and weaknesses as well
Five of the top ten pharmaceutical companies are located in the United States and the other five are European companies, all of these companies combined, employ approximately 787,000 people. The ranking of the following pharmaceutical companies are based on
Although, not surprised by the CVS impressive financial portfolio when compared to other similar firms within the health industry, the extent of the corporation’s financial bliss is pleasantly amazing. The corporation is currently in competition with financially healthy companies such as WalMart, Walgreens and target to name a few; and the market cap for CVS is 117.01Bilion dollars compared to the industry’s average of 3.45 Billion dollars. Unfortunately, the CVS market cap is second
Firstly, the report analyses and compares Blackmores Ltd. financial data with two comparable competitors in the industry: Pharm-a-Care laboratories Pty Ltd and Swisse Wellness Pty Limited. Secondly, a detailed financial analysis was performed to analyse the capital structure of
In order to decide on the R&D portfolio, an objective quantitative analysis might not be suitable considering the high levels of uncertainities and consequently the risks involved in pharmaceutical research projects. It is important to have a qualitative analysis of the situation as a whole that includes Vertex’s own financial position, strategic implications, a quantitative analysis of its Portfolios with realistic estimations and a risk analysis of the portfolios.
Biovail Corporation was a large publicly traded pharmaceutical company located in Canada which merged with Valeant Pharmaceuticals International, Inc. in 2011 (SEC, 2011). Said organization engaged in the development and large-scale manufacturing of pharmaceutical products (Chapman, 2009). As such, products were shipped to domestic and international distributors with products to United States customers shipped via truck transport.
GSK is the 2nd largest pharmaceutical firm in the world, and the largest in the UK by sales and profits, it is responsible for 7% of the worlds pharmaceutical market, and has its stocks listed both in UK and US (O 'Rourke, 2002). The origin of the so called blockbuster model, is partly linked with Glaxo (as it was previously known). In the early 80’s, then Glaxo brought to light their first blockbuster drug, Zantac, which was an anti-ulcer drug, which was very similar to the a pre existing drug Tagamet (first ever blockbuster) sold by Smith Kline & French, their completion at the time (MONTALBAN and SAKINÇ, 2011). The introduction of this drug, brought about an increasing sales force in the US, the company soon became dependent on the drug, because it represented a large part of their profit. In 2002, 8 blockbusters of GSK contributed to $14.240 million sales revenue, taking up 53% of its total ethical sales (Froud et al 2006). However, due to the nature of the pharmaceutical industry, the patent began to expire, in other to avoid the patent cliff, Glaxo merged with Wellcome in 1995, which ensured a growing number of sales force, and with Beecham in 2000 (Froud et al., 2006) this merger, boosted the confidence of investors, by growing the business inorganically. For Big Pharma, this block buster model is very profitable, because with the high cost of R&D, the drugs are able to generate ample profit, to cover the sunk costs
Bayer AG is fully committed to expanding its business operations through pharmaceuticals, consumer health, and crop science. Bayer AG understands that in order for the company to successfully expand its Pharmaceuticals department they must properly invest in research, development, and marketing of innovative medicinal products. In addition, Bayer AG is developing clinical programs, which will enable the company to provide various of its products to a greater number of people. Bayer AG ability to identify areas in medicine that remain untapped is crucial to the firm’s long term sustainability. For example, Bayer AG has identified the fields of cardiology, oncology, gynecology, and
The research and development of the pharmaceutical industry is very important as the industry relies on it to develop new products to maintain and sustain the growth of the industry (ALRC 2014). According to the Australian Government Law Reform Commission, every year, the total spending in research and development in pharmaceutical industry, which includes drug discovery, pre-clinical testing and clinical trials on drugs is around $300 million (ALRC 2014). Mergers and acquisitions are intensifying in the global pharmaceutical industry, especially over the last 10 years. With factors like exorbitant research and development costs, the relatively shorter product life cycles, and the rarity of discovering a new life-changing drug acting as catalysts, leading pharmaceutical companies now have more cause to step out and look for external collaboration. This results in an increasing number of smaller biotechnology companies merging with bigger pharmaceutical companies (The
This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,
Competition, typically the most powerful external force, is increased by the advent of globalization. The number of companies and the number of countries where these companies operate and the way governments are dealing with the impacts of globalization is accelerating. The interaction of changes in government policy and business innovation has actually made globalization even faster. If a company does not become a global, it would simply be shut out of new markets. The reasons for the turmoil are numerous: a sputtering economy, increased global competition, the implementation of new technologies that displace jobs, the deregulation of certain industries, and the general
This is a strategic analysis of GlaxoSmithKline that examines the key factors that influence the company and its activities. The strategic analysis will examine key factors in the company’s internal and external environment and their influence on the company’s strategies. GlaxoSmithKline is a global healthcare company that offers pharmaceutical, vaccines and consumer products. The company is a product of various mergers, the latest occurring in 2001 between GlaxoWellcome and SmithKline Beecham. The company started in London United Kingdom in 1715 as Plough Court pharmacy and has evolved to become one of the leading global healthcare companies. The healthcare company operates in more than 150 countries with 89 manufacturing locations and research centers in the USA, China, UK and Belgium. In 2015, the company’s sales grew to £23.9 billion from £23.0 billion in 2014 (GlaxoSmithKline plc. 2015).