A GLOBAL HEALTHCARE COMPANY

byPIYUSH TRIPATHIpiyushtripathi1992@rediffmail.com

Swiss MN Pharmaceutical CompanyCreated in 1996 through a merger of Ciba-Geigy & SandozHeadquartered in Basel, SwitzerlandEmploys nearly 1,19,000 people in 140 countriesSubsidiaries:-

NOVARTIS INTERNATIONAL AG

Better Patient Outcomes by focusing our Resources on developing medicines Science Based Innovation by maintaining substantial investment in R&DLead in Growing Areas of Healthcare by focusing on patented medicines, generics and eye care.

STRATEGYto be the world’s most respected and successful healthcare company …..

Currency inMillions of US Dollars

Dec 312011

Dec 312012

Dec 312013

Dec 312014

TOTAL REVENUES

59,375.0 51,971.0 52,716.0 53,634.0

GROSS PROFIT

40,804.0 36,385.0 36,177.0 36,431.0

OPERATING EXPENSES

28,040.0 24,000.0 24,706.0 24,511.0

OPERATING INCOME

12,764.0 12,385.0 11,471.0 11,920.0

NET INTEREST EXPENSE

-688.0 -673.0 -648.0 -670.0

NET INCOME 9,113.0 9,270.0 9,175.0 10,210.0

FINANCIAL STATEMENT*

*http://www.bloomberg.com/research/stocks/financials/financials.asp

NET INCOME : YEARLY

Jan/11Jan/12

Jan/13Jan/14

84008600880090009200940096009800

100001020010400

9113.00* 9270.00*9175.00*

10210.00*

*CURRENCY IN MILLIONS OF US DOLLARS

Novartis has raised the bar in driving an execution strategy for industrial data, taking advantage of an integrated data infrastructure to improve quality, consistency and productivity across sites while reducing industrial automation and IT costs.Novartis is bringing together Information Technology (IT) and Operational Technology (OT) within their organization and creating a powerful manufacturing engine with Operational Intelligence.

OPERATIONAL DATA

SWOT ANALYSIS :1/4STRENGTHS

Expanded Business Model including Pharmaceutical Unit, Eye Care & Generics, Vaccines etc.Biotechnology Firm “Chiron” was acquired by Novartis AG, a Unique & Profitable step.A Huge Range of Investments.>200 Projects in Clinical Development including 141 in Pharmaceutical Division, as of July 21, 2015.Had a Market-cap of around $280 Billion, largest healthcare company by this metric.

Loss of Patents

Patent protection for a major cancer drug “Glivec”, rejected in India.

FDA delays approval of an oral ant-diabetic drug “Galvus”.

Has not Separate Unit for Pediatrics

WEAKNESSES SWOT

ANALYSIS :2/4

Has a potential to enhance “Sandoz” unit as leading “state-of-the-art” biosimilars manufacturer.

Can contribute its products & services for pediatrics.

Novartis said that it won’t invest on R&D in India, but they should have contribute R&D here because India is a very favorable country for trials.

OPPORTUNITIESSWOT

ANALYSIS :3/4

FDA Warnings : Manufacturing unit in Unterach am Attersee, Austria.

Criminal investigation of its marketing practices in Japan for a popular blood pressure medicine “Diovan”.

Patent expiration & longer term risk of patent expiry for “Glivec”.

THREATS SWOT ANALYSIS :4/4

https://www.novartis.comhttp://www.bloomberg.comhttp://www.pharmafile.com/news/179555/novartis-receives-fda-warning

REFERENCES