Novartis Corporation has what the doctor ordered. As the US headquarters of Switzerland-based Novartis AG, the unit handles administration, sales, and marketing for a vast product line of prescription drugs, vaccines, consumer medicines, and veterinary products. Novartis Corporation also oversees the Novartis Institutes for Biomedical Research, which is headquartered in the US, and charged with the job of discovering new medicines to add to the company's ever-expanding pipeline. Novartis Corporation also headlines dozens of other US business units, including Novartis Pharmaceuticals Corporation (NPC) and the US locations of Novartis' Alcon ophthalmics and Sandoz generics businesses.
New York-based Novartis Corporation heads up the US businesses of Switzerland parent Novartis AG.
With the US accounting for about one-third of its parent's annual revenues, Novartis Corporation plays an important role in the global Novartis organization. Product-wise, the Pharmaceuticals division is its largest segment, bringing in more than half of Novartis' global sales. Therapeutic branches of concentration span a range of medical ailments, including those in the cardiovascular, metabolic, cancer, organ transplantation, central nervous system, respiratory, and infectious disease areas.
Some of Novartis Corporation's key US brands include blood pressure medication Diovan and leukemia drug Gleevec. Products launched in the US market in recent years include schizophrenia drug Fanapt, multiple sclerosis drug Gilenya, and pulmonary disease medication Arcapta.
The Novartis Institutes for BioMedical Research (NIBR) aims to discover new pharmaceuticals based on molecular science using techniques such as bioinformatics, genetics, imaging, and chemical technologies. Massachusetts-based NIBR has a research site in New Jersey, as well as overseas sites in Switzerland, Austria, Japan, and the UK.
To keep its pipeline pumping with new drug candidates, Novartis conducts research and development efforts at locations worldwide (through the NIBR and other institutions). Gaining marketing approval for new drugs is increasingly important for global pharmaceutical firms, as patents on former bestsellers expire and generic competition continues to grow. Indeed, Novartis partners with the University of Pennsylvania's Perelman School of Medicine for clinical trials that evaluate the efficacy and safety of CTL019 in patients with relapsed/refractory acute lymphoblastic leukemia.
In addition to R&D efforts, the Novartis organization keeps its product offerings fresh (and competitive) through acquisitions and partnerships. To offset losses from patent expirations, as well as to balance growth expenses, Novartis also regularly conducts cost-cutting programs, including workforce reductions within its US pharmaceutical sales force in 2011.
Mergers & Acquisitions
The firm has expanded its operations in the US through a number of purchases. For instance, in 2011 the company acquired Alcon, a global maker of ophthalmic surgery systems, pharmaceuticals for optic disorders, and contact lenses with a strong presence in the US market. Novartis' existing US-based eye care unit, CIBA Vision, was merged into Alcon following the transaction.
Additionally, Novartis Pharmaceuticals extended the reach of its US Molecular Diagnostic division's operations by buying laboratory services firm Genoptix in 2011. In 2012, Novartis also expanded the US operations of the Sandoz division through the purchase of dermatology medicines maker Fougera Pharmaceuticals; Fougera's New York location became the headquarters for Sandoz's generic dermatology operations.