Emerging Business Models in the Pharmaceutical Industries ...

20
15
10
5
0
Novartis revenues by Segment( in billion
US$)
Pharmaceuticals Consumer Healthcare
Source: Company’s Annual Reports
Strategic Direction
Novartis follows an innovation-centred business strategy. In
2003 Novartis spent US$3.6 billion on R&D, around 20% of
annual revenues. The company is growing organically to
expand its market base and reach. Novartis announced its
intention to acquire the brands, trademarks, patents and
intellectual property assets of Mead Johnson & Company’s
global adult medical nutrition business.
With the acquisition of Semper Clinical Nutrition, Novartis
secured the second largest medical nutrition business in
the European Nordic region, with sales of approximately
US$10 million. The company is also trying to focus on
geographical expansion in the rapidly growing markets in
USA and the newly expanded EU. Novartis has acquired a
stake in Idenix Pharmaceuticals Inc., a biotechnology
company based in Boston, Massachusetts to support its
Novartis
1999
2000
2001
2002
2003
14
12
10
8
6
4
2
0
Novartis revenues by Geography(in billion
US$)
US
biotechnology initiatives. In the field of genomics, Novartis has
its independent research arm, The Genomics Institute of the
Novartis Research Foundation (GNF), based in La Jolla,
California.
GNF focuses on development of advanced technologies in
fields ranging from cellular genomics and proteomics, to
combinatorial chemistry and structural biology. The DTC
efforts of the company have helped boost scripts for two of its
drugs, Zelnorm and Elidel.
Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 76
Europe
Source: Company’s Annual Reports
Asia/Africa/Aust...
1999
2000
2001
2002
2003