Novartis

Introduction

Novartis AG is a Swiss multinational pharmaceutical corporation based in Basel, Switzerland. It is one of the largest pharmaceutical companies in the world.

Important Medicines

Novartis makes many important medicines, such as clozapine (Clozaril), diclofenac (Voltaren), carbamazepine (Tegretol), valsartan (Diovan), imatinib mesylate (Gleevec/Glivec), and letrozole (Femara), among others.

History

The company was formed in 1996 by the merger of Ciba-Geigy and Sandoz. Over the years, Novartis has focused on making medicines and developing new treatments to help people around the world.

History

Novartis was created in March 1996 and began operating on 20 December from the merger of Ciba-Geigy and Sandoz, both Swiss companies.

Ciba-Geigy

Ciba-Geigy was formed in 1970 by the merger of J. R. Geigy Ltd (founded in Basel in 1857) and CIBA (founded in Basel in 1859).

Ciba began in 1859, when Alexander Clavel (1805–1873) took up the production of fuchsine in his factory for silk-dyeing works in Basel. By 1873, he sold his dye factory to the company Bindschedler and Busch. In 1884, Bindschedler and Busch was transformed into a joint-stock company named "Gesellschaft für Chemische Industrie Basel" (Company for Chemical Industry Basel). The acronym, CIBA, was adopted as the company's name in 1945.

The foundation for Geigy was established in 1857, when Johann Rudolf Geigy-Merian (1830–1917) and Johann Muller-Pack acquired a site in Basel, where they built a dyewood mill and a dye extraction plant. Two years later, they began the production of synthetic fuchsine. In 1901, they formed the public limited company Geigy, and the name of the company was changed to J. R. Geigy Ltd in 1914.

CIBA and Geigy merged in 1970 to form Ciba-Geigy Ltd. /ˌsiːbə ˈɡaɪɡi/.

Mid-1990s controversy

In the mid-1990s, health and environmental agencies noticed an increase in childhood cancers in Toms River, New Jersey, from 1970 to 1995. Investigations showed that the likely cause was contamination from the Toms River Chemical Plant (then operated by Ciba-Geigy). The area was designated a United States Environmental Protection Agency Superfund site in 1983 after toxic chemicals were found. The plant stopped operating in 1996. Since then, the Toms River water system has been tested often and is considered safe.

Dan Fagin's Toms River: A Story of Science and Salvation, a 2014 Pulitzer Prize winning book, looks at the issue of industrial pollution at the site.

Sandoz

Main article: Sandoz

Sandoz is the generic drugs part of Novartis. Before merging with Ciba-Geigy in 1996 to form Novartis, Sandoz Pharmaceuticals (Sandoz AG) was a pharmaceutical company based in Basel, Switzerland. It was known for developing drugs such as Sandimmune for organ transplantation, and other medicines for psychiatric disorders and migraine headaches.

The Chemiefirma Kern und Sandoz ("Kern and Sandoz Chemistry Firm") was founded in 1886 by Alfred Kern (1850–1893) and Edouard Sandoz (1853–1928). The first dyes they made were alizarinblue and auramine. After Kern's death, the company became Chemische Fabrik vormals Sandoz in 1895. The company began making the fever-reducing drug antipyrin that same year. In 1899, they started making the sugar substitute saccharin.

Between the World Wars, Sandoz brought products like Gynergen (1921) to market. Sandoz also made chemicals for textiles, paper, and leather, starting in 1929. In 1939, the company began making agricultural chemicals.

The psychedelic effects of lysergic acid diethylamide (LSD) were discovered at Sandoz laboratories in 1943. Sandoz marketed the substance as a psychiatric drug in the 1950s and 1960s.

Sandoz opened its first foreign offices in 1964. In 1967, Sandoz merged with Wander AG. Sandoz acquired several companies over the years. In 1995, Sandoz spun off its specialty chemicals business to form Clariant. In 1997, Clariant merged with the specialty chemicals business from Hoechst AG in Germany.

Merger

In 1996, Ciba-Geigy merged with Sandoz, with the pharmaceutical and agrochemical parts of both staying together to form Novartis. Other parts of Ciba-Geigy and Sandoz became independent companies, such as Ciba Specialty Chemicals.

Post-merger

In 1998, the company made a biotechnology agreement with the University of California at Berkeley Department of Plant and Microbial Biology. The agreement ended in 2003.

2000–2010

In 2000, Novartis and AstraZeneca combined their agrobusiness to create a new company, Syngenta.

In 2003, Novartis organized its generics businesses into one division.

In 2005, Novartis bought Hexal, a leading generic drug company in Germany, and Eon Labs, a fast-growing generic pharmaceutical company in the United States.

In 2006, Novartis bought the California-based Chiron Corporation.

In 2007, Novartis sold the Gerber Products Company to Nestlé.

In 2009, Novartis agreed to buy an 85 percent stake in a Chinese vaccines company.

In 2010, Novartis offered to buy Alcon, the world's largest eye-care company, for $60 billion.

2011–present

In 2011, Novartis bought the medical laboratory diagnostics company Genoptix.

In 2012, the Company cut about 2,000 jobs in the United States.

In 2013, the Indian Supreme Court issued a decision about Novartis' patent application in India.

In 2014, Novartis announced plans to cut jobs and bought several companies.

In 2015, the company bought two cancer-drug candidates.

In 2016, the company bought several companies including Selexys Pharmaceuticals and Ziarco Group Limited.

In 2017, Novartis announced it would buy Advanced Accelerator Applications for $3.9 billion.

In 2018, Novartis bought Avexis for $8.7 billion and signed deals with other companies.

In 2019, Novartis completed the spin-off of Alcon. It also made a partnership with Microsoft for five years to improve drug development. Novartis also bought The Medicines Company for $9.7 billion.

In 2020, Novartis bought several companies including Amblyotech and Vedere Bio.

In 2021, Novartis announced it would buy gene-therapy business Arctos Medical.

In 2023, Novartis announced it would buy Chinook Therapeutics and DTx Pharma.

In 2024, Novartis announced it would buy MorphoSys AG and Mariana Oncology.

Acquisition history

Novartis acquisitions

• Novartis AG
  • Novartis (Merger of Ciba-Geigy and Sandoz, 1996)
    • Ciba-Geigy
      • J. R. Geigy Ltd (Merged 1971)
      • CIBA (Merged 1971)
    • Sandoz
      • Kern and Sandoz Chemistry Firm (Founded 1886)
      • Wander AG (Acq 1967)
      • Lek d.d. (Slovenia) (Acq 2002)
      • Aspen Global inc (Japanese business) (Acq 2019)
  • Hexal (Acq 2005)
  • Eon Labs (Acq 2005)
  • Chiron Corporation (Acq 2006)
    • Matrix Pharmaceuticals Inc (Acq 2002)
    • PowderJect (Acq 2003)
    • PathoGenesis (Acq 2001)
    • Cetus Corporation
      • Cetus Oncology
      • Biocine Company
      • Chiron Diagnostics
      • Chiron Intraoptics
      • Chiron Technologies 
    • Adatomed GmbH
  • Zhejiang Tianyuan Bio-Pharmaceutical Co., Ltd (Acq 2009)
  • Alcon (Founded 1945, Acq 2010)
    • Texas Pharmacal Company (Acq 1979)
  • Genoptix (Acq 2011)
  • Fougera Pharmaceuticals (Acq 2012)
  • CoStim Pharmaceuticals (Acq 2014)
  • GlaxoSmithKline (Cancer drug division) (Acq 2014)
  • Spinifex Pharmaceuticals (Acq 2015)
  • Admune Therapeutic (Acq 2015)
  • Selexys Pharmaceuticals (Acq 2016)
  • Ziarco Group Limited (Acq 2016)
  • Advanced Accelerator Applications (Acq 2018)
  • AveXis (Acq 2018)
  • Endocyte (Acq 2018)
  • CellforCure (Acq 2018)
  • The Medicines Company (Acq 2019)
  • Amblyotech (Acq 2020)
  • Vedere Bio (Acq 2020)
  • Cadent Therapeutics (Acq 2020)
    • Luc Therapeutics (Merged 2017)
    • Ataxion Therapeutics (Merged 2017)
  • Arctos Medical (Acq 2021)
  • Gyroscope Therapeutics (Acq 2021)
  • DTx Pharma, Inc. (Acq 2023)
  • Chinook Therapeutics, Inc. (Acq 2023)
  • MorphoSys (Acq 2024)
  • Mariana Oncology (Acq 2024)
  • Anthos Therapeutics (Acq 2025)
  • Regulus (Acq 2025)
  • Avidity Biosciences, Inc. (Acq 2025)

Corporate structure

Novartis AG is a Swiss company that owns many other companies around the world. In the United States, it works through a company called Novartis Pharmaceuticals Corporation, based in New Jersey.

The company has two main parts: one for new medicines and another for generic medicines. In 2019, the eye-care part called Alcon became its own company. In 2023, Novartis finished separating its generic medicines part, Sandoz.

The new medicines part has two groups: one for international markets and one for the United States. Novartis works through many smaller companies that help with holding money, selling products, making medicines, and researching new treatments.

Novartis used to own a part of another company called Roche, but it no longer controls it. It also has important agreements with Genentech, a company that belongs to Roche, for medicines like Lucentis and Xolair.

In 2014, Novartis opened a center in Hyderabad, India, to help with research and development, medical writing, and other tasks for its different medicine groups.

Place in its market segments

Novartis is the world's largest company in life sciences and agribusiness markets. It was also the second-largest pharmaceutical company by value in 2019.

• Alcon: Novartis bought Alcon, and it had yearly sales of $6.5 billion. In April 2019, Novartis let Alcon operate on its own.
• Sandoz: Since 2013, Sandoz has been known as the world's second-largest company for generic medicines. Sandoz is a leader in biosimilars. In 2018, Sandoz had $9.9 billion in net sales. In August 2022, Novartis planned to separate Sandoz by late 2023.
• Vaccines and Diagnostics Division: In 2013, Novartis thought about selling its vaccines and diagnostics part. This sale finished in late 2015, and the division joined CSL's BioCSL operation, trading as Seqirus. In 2018, Novartis sold its consumer health vaccines to GlaxoSmithKline for $13 billion.
• Consumer: Novartis is not a top company in over-the-counter medicines or animal health. Its well-known brands are Excedrin and Theraflu, but sales were slow due to issues at a main U.S. factory.

In 2018, Novartis ranked second on the Access to Medicine Index.

Finance

As of January 31, 2025, Novartis shares were worth over $104.72 each, and the company's total value was $210.39 billion.

Pricing

Entresto (sacubitril/valsartan)

In 2023, a group noted that Entresto was one of five expensive drugs that had big price increases without new proof that the drug got better. The cost of Entresto went up by 7%, which added costs for U.S. health payers.

Research

The company has a big research center called "Novartis Institutes for BioMedical Research (NIBR)" in Cambridge, Massachusetts, United States. This center has two parts that study diseases that affect many people. One part looks at diseases like tuberculosis, dengue, and malaria. The other part studies diseases like typhoid fever and shigella.

Novartis works with other companies and schools on research. It is part of a project called InnoMed PredTox to keep patients safe before clinical trials. The company also joins projects through the Innovative Medicines Initiative of EFPIA and the European Commission.

Novartis is working with Science 37 to let patients have video visits instead of traveling to clinics. Over the next three years, it plans ten clinical trials using mobile technology to help patients avoid long trips to hospitals.

Products

Pharmaceuticals (66 in total as of 28 April 2023)

Consumer health

• Benefiber
• Bialcol Alcohol
• Buckley's cold and cough formula
• Bufferin
• ChestEze
• Comtrex cold and cough
• Denavir/Vectavir
• Desenex
• Doan's pain relief
• Ex-Lax
• Excedrin
• Fenistil
• Gas-X
• Habitrol
• Keri skin care
• Lamisil foot care
• Lipactin herpes symptomatic treatment
• Maalox
• Nicotinell
• No-doz
• Quinvaxem (Pentavalent vaccine)
• Otrivine
• Prevacid 24HR
• Savlon
• Tavist
• Theraflu
• Vagistat
• Tixylix
• Voltaren

In 2009, the United States Department of Health and Human Services gave Novartis money to build a plant in Holly Springs, North Carolina to make influenza vaccine. The plant can make many doses of pandemic vaccine quickly if needed.

In 2014, Novartis sold its consumer health products to form a new joint venture with GlaxoSmithKline. In 2018, GSK bought the rest of Novartis' share.

Animal health

Pet care

• Interceptor (Milbemycin oxime), oral worm control product
• Sentinel Flavor Tabs (Milbemycin oxime, Lufenuron), oral flea control product
• Deramaxx (Deracoxib), oral treatment for pain and swelling from joint problems in dogs
• Capstar (Nitenpyram), oral tablet for flea control
• Milbemax (Milbemycin oxime, Praziquantel), oral worm treatment
• Program (Lufenuron), oral tablet for flea control

Livestock

• Acatalk Duostar (Fluazuron, Ivermectin), tick control for cattle
• CLiK (Dicyclanil), fly control for sheep
• Denagard (Tiamulin), antibiotic for a pig disease linked to Brachyspira
• Fasinex (Triclabendazole), oral medicine for cattle to treat and prevent liver fluke
• ViraShield, For use in healthy cattle, including pregnant cows, to help prevent diseases from certain viruses

Bioprotection (insect and rodent control)

• Actara (Thiamethoxam)
• Atrazine (Atrazine)
• Larvadex (Cyromazine)
• Neporex (Cyromazine)
• Oxyfly (Lambda-cyhalothrin)
• Virusnip (Potassium monopersulfate)

Controversies and criticism

Pakistan

Novartis is facing a lawsuit in Pakistan for not paying commissions. If interest is added, the amount owed could be very large.

Challenge to India's patent laws

Novartis fought for many years to patent a drug called Gleevec in India. The case went to India's highest court, which decided against Novartis. The court said Novartis did not show that their version of the drug was better, so the patent was not allowed.

Sexual discrimination

In 2010, a court found that Novartis treated female employees unfairly because they were pregnant. The company later agreed to a settlement with these employees.

Marketing violations

In 2008, the US Food and Drug Administration told Novartis to stop making false claims about one of its medicines. Later, Novartis paid a fine for illegal marketing practices.

Avastin

Novartis tried to stop hospitals in the UK from using a cheaper drug instead of its more expensive one. After offering discounts, the hospitals agreed to stop using the cheaper option, and Novartis dropped its lawsuit.

Valsartan

In 2013, it was found that research showing benefits of a heart drug called Valsartan was not true. Novartis was accused of misleading people.

Corruption

In 2018, Novartis was investigated for bribing officials in Greece. The company paid fines to US authorities to settle these claims.

Michael Cohen

Novartis paid a consulting firm linked to Michael Cohen, who worked with then-President Donald Trump. Novartis wanted help with drug pricing and regulation.

AveXis data integrity

In 2019, Novartis admitted that some test results used to approve a new medicine were wrong. The company faced scrutiny from authorities.

False Claims Act Violations

In 2020, Novartis paid a large fine for allegedly paying doctors to prescribe its medicines and for other improper payments.

Philanthropy

Fight against leprosy

Novartis has helped fight a disease called leprosy for many years. Since 2000, the company has given free medicine to countries where the disease is common. This helps make sure people get the care they need.