Difference between revisions of "Novartis"
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Novartis was founded in 1996 as a result of the merger of Ciba-Geigy and Sandoz, both Swiss companies with a long history of pharmaceutical experience.<ref>Novartis, [http://www.novartis.com/about-novartis/company-history/index.shtml "Novartis History"], Novartis website, accessed December 2008.</ref> Following the merger, Novartis reorganized its activities, and spun out its chemicals activities as Ciba Specialty Chemicals, which, in January 1997, became an independent company.<ref>Ciba, [http://cibasc.com/index/cmp-index/cmp-about.htm "About Us"], Ciba website, accessed December 2008.</ref> {In September 2008 BASF bought Ciba).<ref>[http://www.corporate.basf.com/en/presse/mitteilungen/pm.htm?pmid=3229&id=V00-qN3bGDLaUbcp*WJ "BASF makes offer to acquire Ciba"], Media Release, September 15, 2008.</ref><ref>[http://www.iht.com/articles/2008/09/15/business/basf.php "BASF buys Swiss specialty chemicals maker Ciba"], ''International Herald Tribune'', September 15, 2008.</ref> | Novartis was founded in 1996 as a result of the merger of Ciba-Geigy and Sandoz, both Swiss companies with a long history of pharmaceutical experience.<ref>Novartis, [http://www.novartis.com/about-novartis/company-history/index.shtml "Novartis History"], Novartis website, accessed December 2008.</ref> Following the merger, Novartis reorganized its activities, and spun out its chemicals activities as Ciba Specialty Chemicals, which, in January 1997, became an independent company.<ref>Ciba, [http://cibasc.com/index/cmp-index/cmp-about.htm "About Us"], Ciba website, accessed December 2008.</ref> {In September 2008 BASF bought Ciba).<ref>[http://www.corporate.basf.com/en/presse/mitteilungen/pm.htm?pmid=3229&id=V00-qN3bGDLaUbcp*WJ "BASF makes offer to acquire Ciba"], Media Release, September 15, 2008.</ref><ref>[http://www.iht.com/articles/2008/09/15/business/basf.php "BASF buys Swiss specialty chemicals maker Ciba"], ''International Herald Tribune'', September 15, 2008.</ref> | ||
| + | Novartis combined its agricultural division with that of [[AstraZeneca]] to create [[Syngenta]] in November 2000.<ref>Syngenta, [http://www.syngenta.com/en/about_syngenta/companyhistory.html "Company History"], Syngenta website, accessed December 2008.</ref> | ||
| − | In | + | In 2003, Novartis created a new company named Sandoz, a subsidiary that bundles its generic drug production, reusing the predecessor brand.<ref>Sandoz, [http://www.sandoz.it/site/it/l_azienda/News/Notizie/pool/Novartis_toSandoz.pdf "Return of a traditional name: Novartis Generics rebranded as Sandoz"], Media Release, May 20, 2003.</ref> |
| − | + | On 20 April 2006, Novartis acquired the California-based Chiron Corporation. Chiron was formerly divided into three units: Chiron Vaccines and Chiron Blood Testing, which now combine to form Novartis Vaccines and Diagnostics, and Chiron BioPharmaceuticals, to be integrated into Novartis Pharmaceuticals.<ref>[http://www.allbusiness.com/company-activities-management/company-structures-ownership/5392342-1.html "Chiron Shareholders Approve Novartis Acquisition"], ''Media Release'', April 19 2006.</ref> | |
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| − | On 20 April 2006, Novartis acquired the California-based Chiron Corporation. Chiron was formerly divided into three units: Chiron Vaccines and Chiron Blood Testing, which now combine to form Novartis Vaccines and Diagnostics, and Chiron BioPharmaceuticals, to be integrated into Novartis Pharmaceuticals. | ||
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==Financial Highlights== | ==Financial Highlights== | ||
Revision as of 09:26, 13 December 2008
 |
This article is part of the Center for Media & Democracy's spotlight on global corporations. |
| Type | Private pharmaceutical company |
|---|---|
| Genre | Pharmaceutical drug producer and biotechnological researcher |
| Founded | 1996 |
| Headquarters | Basel, Switzerland |
| Employees | 67,653 |
Novartis is a pharmaceutical multinational from Switzerland that specializes in biotechnological drug production and distribution, as well as a vast array of consumer healthcare products, including the manufacturing of vaccines, the development of over-the-counter pharmaceuticals not requiring prescrptions, as well as animal healthcare products and the production of contact lenses and various lense care products. It is the world's 5th largest vaccine producer, and its presence is noted in over 140 countries worldwide through 100.000 or so associates[1]. The company formerly owned the Gerber Products Company, a major infant and baby products producer, but sold it to Nestlé on September, 2007.[2]
Contents
Company History
Novartis was founded in 1996 as a result of the merger of Ciba-Geigy and Sandoz, both Swiss companies with a long history of pharmaceutical experience.[3] Following the merger, Novartis reorganized its activities, and spun out its chemicals activities as Ciba Specialty Chemicals, which, in January 1997, became an independent company.[4] {In September 2008 BASF bought Ciba).[5][6]
Novartis combined its agricultural division with that of AstraZeneca to create Syngenta in November 2000.[7]
In 2003, Novartis created a new company named Sandoz, a subsidiary that bundles its generic drug production, reusing the predecessor brand.[8]
On 20 April 2006, Novartis acquired the California-based Chiron Corporation. Chiron was formerly divided into three units: Chiron Vaccines and Chiron Blood Testing, which now combine to form Novartis Vaccines and Diagnostics, and Chiron BioPharmaceuticals, to be integrated into Novartis Pharmaceuticals.[9]
Financial Highlights
(In USD millions, unless indicated otherwise)
2007
Total Group net sales: 39 800
Continuing operations
- Net sales: 38 072
- Operating income excluding environmental and restructuring charges: 7 815
- Return on net sales (%): 20.5
- Operating income: 6 781
- Net income: 6 540
Net income – Discontinued operations 5 428 377
Net income – Total Group 11 968 7 202
Basic earnings per share:
- Continuing operations: 2.81
- Total Group: 5.15
R&D investments: 6 430
- As % of net sales: 16.9
Number of associates: 98 200
2006
Total Group net sales: 37 020
Continuing operations:
- Net sales: 34 393
- Operating income excluding environmental and restructuring charges: 7 642
- Return on net sales(%): 22.2
- Operating income: 7 642
- Net income: 6 825
Net income – Discontinued operations: 377
Net income – Total Group: 7 202
Basic earnings per share:
- Continuing operations1: 2.90
- Total Group: 3.06
R&D investments1: 5 321
- As % of net sales: 15.5
Number of associates: 94 241
For more information please view the 2007 Novartis Annual Financial report, found at: [10]
Business Strategy
Novartis' business strategy can be outlined through its 6 major product-lines:
Pharmaceuticals
The company's Pharmaceuticals portfolio includes more than 45 key marketed products, among which the following can be found[11]:
- Diovan HCT/Co-Diovan (valsartan and hydrochlorothiazide) for hypertension. (See [htttp://www.diovan.com here]
- Gleevec/Glivec (imatinib mesylate/imatinib); marketed to treat certain forms of leukemia, gastrointestinal stromal (GIST) tumors and various rare cancers; see here
- Lamisil (terbinafine), an antifungal agent (see here
- Zometa (zoledronic acid) for cancers that have spread (or "metastasized") to the bones from solid tumors; see here
Vaccines and Diagnostics
Novartis' Vaccines and Diagnostics Division has specialized in the development of products to combat over 20 vaccine-preventable viral and bacterial diseases, as well as an array of sophisticated blood-testing equipment.
The current portfolio includes vaccines for:
- Influenza
- Meningitis
- Rabies
- Tick-borne encephalitis
- Haemophilus influenzae type B (Hib)
- Polio
- Diphtheria
- Tetanus
- Pertussis (whooping cough)
Novartis is the world’s fifth-largest vaccines manufacturer and the second-largest supplier of influenza vaccines in the US.[12]
Sandoz
Sandoz is the generic pharmaceuticals branch of Novartis, specializing in distributing and manufacturing a vast array of low-cost pharmaceutical products no longer protected by patents.
"The key product groups of Sandoz include antibiotics, treatments for central-nervous-system disorders, gastrointestinal medicines, cardiovascular treatments and hormone therapies."[13]
Over-the-counter drugs
"Over-the-Counter (OTC) is a world leader in the research, development, production and marketing of self-medication products that do not require prescriptions."[14]
Animal Health
"Animal Health focuses on the well-being of companion animals and on the health and productivity of farm animals. Our product range provides solutions for the prevention and treatment of several widespread animal diseases and parasite infestations."[15]
Ciba Vision
CIBA VISION specializes in contact lenses and lens-care production in over 70 countries[16]
Corporate Accountability
Labor
"Novartis - dealing with complexities of implementing a living wage"
"Based in Basel, this Swiss pharmaceutical company employs more than 101,000 people and operates in 140 countries. Its focus extends not only to the users of its products but to its employees as well being one of the first international companies to develop and implement a voluntary commitment to pay a living wage to all of its employees around the world. According to Novartis, to focus on a living rather than a minimum wage can contribute to stability and prosperity in communities and attract more skilled, productive and loyal employees. However, being one of the first companies to implement a living wage meant that it was done in the absence of universally accepted models. Novartis took a range of existing methodologies that considered specific geographic data and household expenditure for varying household sizes and places of residence."
Human Rights
"Misdeeds by pharmaceutical industry"
29-11-2006
"New medicines are often tested on people in developing countries in an unethical manner. The Wemos Foundation in Amsterdam, the Netherlands, finds it scandalous that the pharmaceutical industry exploits the weak position of people in developing countries. A new report from the Dutch Centre for Research on Multinational Corporations (SOMO) documents no fewer than 22 known cases in which the rights of trial subjects have been violated.
The report was released on Friday, 17 November during an event held to mark the silver jubilee of the Wemos Foundation. Liesbeth van der Kruit took such politicians as Diederik Samsom (PvdA) and Kees Vendrik(GroenLinks) to task about this issue during the Grote Verkiezingsshow (the Great Election Show). The report describes tests that involved various well-known pharmaceutical companies such as Novo Nordisk, Pfizer, Johnson & Johnson, Novartis, AstraZeneca and GlaxoSmithKline."[17]
"Compulsory licensing “a last mechanism,” says Thai Health Minister"
August, 2008. "Thailand’s new Public Health Minister, Chawarat Charnveerakul, has said that imposing compulsory licensing (CL) is “the last mechanism” that the government would use “to help the poor get access to life-saving drugs at a fair price."
"First, we have to negotiate with drug firms to reduce the price of their drugs. If they do not agree with us we will then impose compulsory licensing for expensive drugs to save our patients’ lives," said Mr Chawarat, who was appointed to his post this month in a cabinet reshuffle. He added that his Ministry had not revoked the CL policy as a way of obtaining essential drugs, but retained it as “a key mechanism” in negotiating for lower prices."[18]
"Malaria campaigners hopeful on drugs pricing deal"
Septemeber, 2008. "Anti-malaria campaigners are confident that a deal can be reached with pharmaceuticals groups to cut the cost of new drugs needed to fight a disease estimated to kill more than 1 million people a year.
Negotiations are being held with several big drugs makers as part of a wider drive to bring the cost of so-called artemisinin-based combination therapies (ACTs) down to the level of the older, but now ineffective, chloroquinine treatments.
"I am very hopeful that this first stage, the negotiations, will produce results,"Michel Kazatchkine, executive director of the Global Fund to Fight AIDS, Tuberculosis and Malaria told reporters in Paris on Tuesday."[19]
Environment
USA: Novartis Phasing Out Genetically Engineered Foods
Environment News Service
August 4th, 2000
"Novartis, one of the world's leading producers of genetically engineered seeds, has been phasing out genetically engineered ingredients in its food products worldwide for over a year.
Responding to a statement issued by environmental group Greenpeace International yesterday, Novartis Consumer Health U.S. vice president Sheldon Jones told ENS there is nothing new about the company's stand on genetically engineered food.
Greenpeace cited a letter sent by Novartis' European Consumer Health department as evidence the company had stopped producing food containing genetically engineered ingredients in its own brands on June 30.
In particular, the letter stated production of the candy bar Cereal Chocosoja had been stopped because Novartis could not guarantee its non-GM quality."[20]
Consumer Protection and Product Safety
"INDIA: Novartis Patents Case Far From Dead"
Inter Press Service News Agency
August 9th, 2007
"Cancer patients in India have reason to be relieved at a high court ruling this week which dismissed a petition by Swiss pharmaceuticals multinational corporation (MNC) Novartis challenging an Indian law which denies patents for minor or trivial improvements to known drugs. At immediate stake is the cost of a leukaemia drug, imatinib mesylate. Novartis prices its brand of the medicine, Gleevec/Glivec, at Rs 120,000 (3,000 US dollars) per dose. Indian generic drug manufacturers sell it at Rs 8,000 (200 dollars). India’s average per capita annual income is equivalent to only a fifth of the price of a single dose of Gleevec/Glivec. Had Novartis been granted a patent on its version of the drug, tens of thousands of Indians would have been deprived of life-saving treatment.[21]
"The Berlin medical journal "arznei-telegramm" accused Novartis in 2002 of leaving out unfavourable results in the publication of a study of the drug Diovan, in order to make the efficacy of the drug look better than it actually was. The same journal also accused Novartis of illegal marketing practices and creating expectations of efficacy that could not be met."[22]
"In 2002, the Swiss consumer protection agency Stiftung für Konsumentenschutz criticized Novartis for misleading consumers. Novartis had stated in its sales promotion that its drug Mebucasol F was new on the market, but the active ingredients would be the same as those of an older but cheaper drug with the name Sangerol."[23]
Anti-Trust and Tax Practices
Farmers Launch Anti-Trust Suit Against Monsanto
January 4th, 2000
"Six farmers -- from the U.S. and France -- named as representatives of farmers worldwide, under the aegis of the National Family Farm Coalition, in a suit formulated by Cohen Milstein Hausfeld & Toll on behalf of a consortium of other firms, have launched a major anti-trust, price fixing law suit against the Monsanto Corp. and nine corporate co-conspirators (including Novartis)"[24]
In 2004, a class action lawsuit was filed in the US against Novartis accused them of providing fraudulent kickbacks, discounts and rebates to encourage pharmacy benefits managers to put its drugs on their formularies. The case is still pending.[25]
Social Responsibility Initiatives
Governance
Board of Directors
- Daniel Vasella, M.D: Chairman and CEO
- Ulrich Lehner, Ph.D: Vice Chairman and Lead Director
- Hans-Joerg Rudloff: Vice Chairman
- Peter Burckhardt, M.D.
- Srikant Datar, Ph.D.
- William W. George
- Alexandre F. Jetzer
- Pierre Landolt
- Andreas von Planta, Ph.D.
- Dr. Ing. Wendelin Wiedeking
- Marjorie M. Yang
- Rolf M. Zinkernagel, M.D.
- Ann Fudge
Executive Comittee
- Daniel Vasella, M.D.: Chairman and CEO
- Andreas Rummelt, Ph.D.: Group Head of Quality Assurance and Technical Operations
- Joseph Jimenez: CEO Pharmaceuticals
- Joerg Reinhardt, Ph.D.: COO of the Novartis Group
- Juergen Brokatzky-Geiger, Ph.D: Head of Human Resources
- Mark C. Fishman, MD: President of the Novartis Institutes for Biomedical Research (NIBR)
- Raymund Breu, Ph.D.: Chief Financial Officer
- Thomas Wellauer, Ph.D.: Head of Corporate Affairs
- Thomas Werlen, Ph.D: General Counsel
Permanent Attendee of the Executive Committee
- Andrin Oswald: CEO Vaccines and Diagnostics
- David Epstein: President and CEO Oncology and Molecular Diagnostics
- George Gunn: CEO Consumer Health, President and CEO Animal Health
- Jeffrey George
Contact Information
Head Office
Novartis International AG
CH-4002 Basel
Switzerland
Phone: +41 61 324 11 11
Fax: +41 61 324 80 01
Website: http://www.novartis.com/
Monday - Friday, 8:30 - 17:00, GMT+1 (Central European Time)
Articles and Resources
Books on the Company
Related SourceWatch Articles
Sources
- ↑ "About Novartis: Facts"
- ↑ Novartis, "Novartis completes divestment program with transfer of Gerber baby foods business", Media Release, September 03, 2007.
- ↑ Novartis, "Novartis History", Novartis website, accessed December 2008.
- ↑ Ciba, "About Us", Ciba website, accessed December 2008.
- ↑ "BASF makes offer to acquire Ciba", Media Release, September 15, 2008.
- ↑ "BASF buys Swiss specialty chemicals maker Ciba", International Herald Tribune, September 15, 2008.
- ↑ Syngenta, "Company History", Syngenta website, accessed December 2008.
- ↑ Sandoz, "Return of a traditional name: Novartis Generics rebranded as Sandoz", Media Release, May 20, 2003.
- ↑ "Chiron Shareholders Approve Novartis Acquisition", Media Release, April 19 2006.
- ↑ "2007 Novartis Annual Financial report"
- ↑ "Novartis Pharmaceuticals Division"
- ↑ "Novartis' Vaccines and Diagnostics Division"
- ↑ "About Sandoz: Novartis' generic pharmaceuticals division"
- ↑ "Novartis' Over-the-counter product line"
- ↑ "Novartis Animal Health"
- ↑ "CIBA Vision"
- ↑ "Report from the Dutch Centre for Research on Multinational Corporations on unfair pharmaceutical trial practices"
- ↑ "Compulsory licensing on pharmaceutical drugs in Thailand"
- ↑ "Malaria campaigners hopeful on drugs pricing deal"
- ↑ "Novartis and Genetically Engineered Foods"
- ↑ "Novartis denied patent in India"
- ↑ "More Consumers International Claims on Novartis"
- ↑ "More Consumers International Claims on Novartis"
- ↑ "Farmers Launch Anti-Trust Suit Against Monsanto and Novartis"
- ↑ "Consumers International's list of claims against Novartis"
External Resources
- Consumers International: http://www.consumersinternational.org
- Business and Human Rights: http://www.business-humanrights.org
- Corporate Watch: http://www.corpwatch.org
- Centre for Research on Multinational Corporations: http://somo.nl/
