HomeBusinessNovartis Focuses on the US Market, Looking to Top 5 Positions by 2027
Novartis Focuses on the US Market, Looking to Top 5 Positions by 2027
September 22, 2022
Novartis (New York Stock Exchange: NVS) said its transformation into a semi-pure, innovative pharmaceutical company is nearing completion and that the Swiss giant will focus on the US market, despite recent laws to control drug prices.
The The company said in a press release on September 22 that it intends to focus on five therapeutic areas — cardiovascular, immunology, neuroscience, solid tumors, and hematology.
“Our strategy focuses on five attractive core therapeutic areas, key technology platforms, and the US market, with the goal of maximizing value for each new molecular entity from our deep pipeline,” said Vas Narasimhan, CEO of Novartis.
In August, the US House of Representatives voted to pass an inflation-reduction law, paving the way for broad reforms in health care and clean energy. The law authorizes Medicare to negotiate prescription drug prices, among its other actions. However, some analysts believe the law is unlikely to cause a significant impact on the pharmaceutical industry.
The company added that the psoriasis drug Cosentyx, the heart failure drug Entresto, the gene therapy Zolgensma, the breast cancer drug Kisqali, the multiple sclerosis drug Kesimpta, the cholesterol treatment Leqvio, the prostate cancer drug Pluvicto and the leukemia treatment Scemblix, each with peak sales of billions of dollars.
Novartis aims to build its US business into a top-five US player by 2027. A “USA first” mindset, increasing the share of US patients in clinical trials and building capacity and talent, among other actions, will help Novartis achieve this goal. According to the company.
The Swiss drugmaker added that it also aims to be among the top three players in China, and a key growth market for the next decade, while maintaining its leading position in Germany and Japan.
“We will continue to deliver improved financials with a compound annual sales growth rate of over 4% through 2027 and a Core Op Inc margin of ~40%+ over the medium and long term,” Narasimhan commented.
Novartis noted that in addition to two well-established platforms in chemistry and bioprocessing, three new platforms — gene and cell therapy, radiotherapy, and xRNA — are being prioritized to continue investing in new research and development capabilities and manufacturing scale.
The company added that its drug portfolio is moving toward biological platforms and technology, recognizing its growing power in treating disease.