|Novartis AG (NVS)
|Novartis AG Graph source Edgar Online Pro on April 19th, 2006
The Following data is sourced from Yahoo Finance & the ANNUAL REPORT ON FORM 20-F For the Year Ended December 31, 2005 . The overview of the company was:
Novartis AG engages in the research, development, manufacture, and marketing of health care products. It operates in three divisions: Pharmaceuticals, Sandoz, and Consumer Health. The Pharmaceuticals division develops and markets pharmaceuticals in various therapeutic areas, including cardiovascular and metabolism, neuroscience, respiratory and dermatology, specialty medicines, oncology and hematology, transplantation and immunology, and ophthalmic diseases, as well as arthritis, bone, gastrointestinal, hormone replacement therapy, and infectious diseases. The Sandoz division supplies generic pharmaceuticals that develops, produces, and markets these drugs along with pharmaceutical and biotechnological active substances intermediates to wholesalers, pharmacies, hospitals, and other healthcare outlets. It offers antibiotics, treatments for central nervous system disorders, gastrointestinal medicines, cardiovascular treatments, and hormone therapies. The Consumer Health division operates five units, such as over-the-counter self-medication products, animal health, medical nutrition, gerber, and lens and vision care. Novartis has a strategic alliance with Infinity Pharmaceuticals, Inc. to discover, develop, and commercialize drugs targeting Bcl-2 protein family members for the treatment of cancer indications; and collaboration with Alnylam Pharmaceuticals, Inc. to develop RNAi therapeutics for pandemic flu. The company sells its products to physicians, pharmacists, hospitals, insurance groups, and managed care organizations in the United States, Europe, Japan, and internationally. Novartis was founded in 1895 and is headquartered in Basel, Switzerland.
Novartis is the only company with leadership positions in both patented and generic pharmaceuticals. We are strengthening our medicine-based portfolio, investing in strategic growth platforms:
• Innovation-driven prescription medicines.
• Cost-effective and high-quality generic medicines.
• Human vaccines that address public health and therapeutic needs.
• Leading self-medication (OTC) brands.
Ranked by IMS Health as one of the fastest-growing global pharmaceutical companies worldwide in recent years, we are seeking to further expand our market share by introducing new products and maximizing sales. We have received 14 new pharmaceutical product approvals in the US since 2000. Our current product portfolio includes more than 40 key marketed products, many of which are leaders in their respective therapeutic areas. In addition, the Development portfolio involves more than 75 projects—including potential new products as well as potential new indications or formulations for existing products—in various stages of clinical development.
Our efforts have been recognized by industry experts, who have ranked Novartis as having one of the best combinations of organic growth, pipeline opportunities and low patent-risk exposure among major companies in the pharmaceuticals industry.
The Pharmaceuticals Division has the following therapeutic areas:
Cardiovascular & Metabolism
Our broad portfolio of cardiovascular and metabolic agents offers some of the best tools available today to treat and protect patients along critical points of the cardiovascular continuum. Top products include Diovan, Co-Diovan/Diovan HCT and Lotrel for the treatment of high blood pressure as well as the cholesterol-lowering agent Lescol/Lescol XL .
Oncology & Hematology
Novartis has a strong oncology portfolio that provides a broad range of innovative therapies and practical solutions for cancer patients. Our efforts to discover and develop innovative approaches for the treatment of cancer have produced breakthrough medicines such as the leukemia therapy Gleevec/Glivec and the breast cancer agent Femara as well as Zometa for the treatment of bone cancers.
Novartis has been an innovator in the area of neuroscience for more than 50 years, having pioneered early breakthrough treatments for a series of disorders that include Alzheimer's disease, Parkinson's disease, attention deficit/hyperactivity disorder, epilepsy, depression, schizophrenia and migraine. Leading products include Exelon for the treatment of Alzheimer's disease and Trileptal for the treatment of epilepsy.
Respiratory & Dermatology
One of our leading products is Xolair for the treatment of severe allergic asthma, and we are making investments in the research of new medicines for respiratory diseases, which also include chronic obstructive pulmonary disease (COPD). Our focus in dermatology is on the treatment of two very common diseases—the inflamed skin condition atopic dermatitis, or eczema, and fungal nail infections. Elidel is a non-steroid cream for eczema, while Lamisil is the most frequently prescribed treatment worldwide for fungal nail infections, with prescriptions written for more than 20 million patients.
Infectious Diseases, Transplantation & Immunology (IDTI)
An emerging therapeutic area for Novartis is infectious diseases, particularly products used to treat viral infections by inhibiting their replication. Our portfolio consists of three main areas: antiviral medicines such as the herpes treatment Famvir , tropical medicines such as the malaria treatment Riamet/Coartem and antibacterials. We are also a world leader in transplantation and immunology, pioneering and revolutionizing the field of transplantation with the discovery and introduction of cyclosporine more than 20 years ago. We have one of the broadest portfolios of immunosuppressants on the market, which include Neoral, Simulect, Certican and myfortic . As of January 1, 2006, responsibility for our Infectious Diseases franchise was transferred from the ABGU therapeutic area to be joined with the Transplantation and Immunology therapeutic area, to form the new IDTI therapeutic area. See "Item 4. Information on the Company—4.B Business Overview—Pharmaceuticals—Overview."
Our research and development in this disease area is aimed at the discovery and development of innovative treatments for "back of the eye" (macular) diseases as well as on "dry eye" conditions in which the eye does not produce sufficient tears. Both of these conditions are characterized by high growth and significant unmet medical need. Our flagship Ophthalmics product is Visudyne , a treatment for certain forms of age-related macular degeneration (AMD).
This therapeutic area includes a group of internal diseases where there is significant unmet medical need, particularly in the areas of gastrointestinal disorders with medicines such as Zelnorm/Zelmac for irritable bowel syndrome and chronic constipation as well as Enablex/Emselex for the treatment of urinary incontinence. Other products include Miacalcin/Miacalcic for osteoporosis as well as Prexige and Voltaren for the treatment of certain types of pain.
Sandoz is a leading global supplier of generic pharmaceuticals that develops, produces and markets these drugs along with pharmaceutical and biotechnological active substances. Through Sandoz, Novartis is the only major pharmaceutical company to have leadership positions in both patented prescription drugs as well as generic pharmaceuticals.
Ranked as the second-largest generics company in the world based on sales, Sandoz has made a series of targeted acquisitions to strengthen its product portfolio, technological expertise and geographic presence, led by the acquisitions of Hexal AG and Eon Labs, Inc. in 2005.
Sandoz offers more than 600 active substances in over 5,000 forms in more than 140 countries. The most important product groups include antibiotics, treatments for central nervous system disorders, gastrointestinal medicines, cardiovascular treatments and hormone therapies.
Consumer Health Division
Consumer Health focuses on creating, developing and manufacturing a range of competitively differentiated products that restore, maintain or improve the health and well-being of consumers. Giving a voice to the consumer is critical for Consumer Health in its objective to deliver accelerated sales growth and gain leadership in key markets with strategic brands. Consumer Health is comprised of activities in OTC, Animal Health, Medical Nutrition, Gerber (formerly Infant & Baby) and CIBA Vision.
Novartis AG, headquartered in Basel, Switzerland, is a public company incorporated under the laws of Switzerland with an indefinite duration. We are domiciled in and governed by the laws of Switzerland. Our registered office is located at the following address:
Highlights of Risks Related to Our (NVS) Business
For further detail please review the 20F Form in detail.
1. We face intense competition from new products.
2. Our research and development efforts may not succeed.
3. We face intense competition from lower-cost generic products.
4. Patent protection is at issue in major markets for the following of our Pharmaceuticals Division's products.
5. In addition to normal price competition in the marketplace, the prices of our Pharmaceuticals Division's products are restricted by price controls and other pricing pressures imposed by governments and health care providers in most countries.
Risks Faced By Our Sandoz (Generics) Division.
1. The success of Sandoz depends on our ability to successfully develop and commercialize additional generic pharmaceutical products.
2. Our revenues and profits from any particular generic pharmaceutical products decline as our competitors introduce their own generic equivalents.
3.Our generic pharmaceutical products face intense competition from brand-name pharmaceutical companies that sell or license their own generic products or successfully extend their market exclusivity period.
4. Recent changes in the US regulatory environment may prevent us from utilizing the exclusivity periods that are important to the success of our generic products.
5.We may fail to successfully integrate Hexal and Eon Labs into our business.
Risks Faced By The Entire Novartis Group:
1. Government regulation may adversely affect our business, financial condition or results of operations.
2. Risks regarding the development of new products.
3. Risks regarding the manufacture of our products.
4. Risks regarding the marketing of our products.
5. Risks regarding the safety and efficacy of our products.
6. Risks arising from the decreasing risk tolerance of the public and of governmental agencies.
7. Other regulatory and legal risks. Changes in worldwide intellectual property protections and remedies, trade regulations and procedures, product counterfeiting, unstable governments and legal systems, intergovernmental disputes and possible nationalizations could also materially adversely affect our business, financial condition or results of operations.
8. We operate in highly competitive and rapidly consolidating industries.
9. Lawsuits, investigations and other liabilities could adversely affect our business, financial condition or results of operations.
10. Risks regarding product liability claims.
11. Risks regarding patent claims by third parties.
12. Risks regarding environmental liabilities.
13. The manufacture of our products is technically highly complex, and sometimes sole-sourced, and a supply interruption or delay could adversely affect our business, financial condition or results of operations.
14. An inability to attract and retain personnel could adversely affect our business, financial condition or results of operations.
15. Foreign exchange fluctuations may adversely affect our earnings and the value of some of our assets.
16. The impairment of long-lived assets could adversely affect our business, financial condition or results of operations.
17. Changes in tax laws could adversely affect our business, financial condition or results of operations.
18. Earthquakes could adversely affect our business, financial condition or results of operations.
19. Product counterfeiting or tampering could adversely affect our business, financial condition or results of operations.
20. Public sentiment against our industry could adversely affect our business, financial condition or results of operations.
21. Terrorism and related military activity could impact global economic conditions and thereby adversely affect our business, financial condition or results of operations.
22. The price of our ADSs and the US dollar value of any dividends may be affected by fluctuations in the US dollar/Swiss franc exchange rate.
23. Holders of ADSs may not be able to exercise preemptive rights attached to shares underlying ADSs.
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