Novartis

Introduction

Novartis is one of the big pharma companies having a strong presence in various pharmaceutical segments. It is engaged in the research, development, manufacture and marketing of branded drugs, generic pharmaceutical products, preventive vaccines, diagnostic tools and consumer health products. The company operates in more than 140 countries across the globe. It is headquartered in Basel, USA and employed 99.834 people as of December 31, 2009. The company recorded revenues of $ 45.103 million during the financial year (FY) ended December 2009, at increase of 5.9 % over FY 2008. The operating profit of the company was $ 9.982 million during FY2009, to increase of 11.4 % over FY2008. The net profit was $ 8.454 million in FY 2009, to increase of 2.7 % over FY 2008.

Novartis International is a multinational pharmaceutical company. The company was founded in 1996 through the merger of reputable Swiss companies Ciba-Geigy and Sandoz Laboratories. Company's current CEO is Joseph Jimneze and Daniel Vessella is the chairman. The company ranks number three in the industry worldwide with respect to sales. Company's sales recorded 36.173 billion US Dollars in year 2008. At present, Novartis is the sixth largest pharmaceutical company in terms of revenue which was calculated 41.5 billion US dollar in year 2009. The company has three subsidiaries Siba Vision, Sandoz and Alcon with 119,418 employees total in year 2010. Novartis produces medicines under the categories of pharmaceutical, generic drugs, over the counter or consumer drugs, vaccines, diagnostics, animal health and contact lenses. Some of the famous drugs produced by Novartis include Comtan, Diovan, Tegretol, Zometa, Tavist, Voltaren, Ritalin, Femara, and Clozaril.

History

Novartis was formed in 1996 by the merger of two Swiss companies, Sandoz and Ciba-Geigy. The merger of the two companies, with a combined heritage of over 300 years, was one of the largest corporate mergers in history.

In 1999, the company initiated a plan to sell off several business units in order to focus efforts on its healthcare business. This plan culminated in 2000 with the spinoff of the company's agribusiness unit with AstraZeneca to form a new company, Syngenta. The company acquired 20 % interest in Roche Holding for approximately $ 3.1 billion in 2001. Over the course of the following year, Novartis increased its investment in Roche by $1.8 billion by acquiring a further 11.4 % of the company's shares.

Novartis acquired Hexal and Eon Labs which integrated into its Sandoz division in 2005. This provided Novartis with a strong base in the international pharmaceutical industry. In the later part of the year, the company sold its dietary food business to the private equity group ABN Amro Capital France for $ 258.6 million. (Festel, pp. 12-37) Towards the end of 2005, Novartis and Astex Therapeutics forged an alliance focused on novel cell cycle anticancer drugs.

In 2006, the company divested its nutrition and Sante unit. During the same period, Novartis acquired Chiron and created a new division focused on vaccines and diagnostics. Novartis received approval from the European Commission to market ...