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Novartis AG is a Swiss-American multinational pharmaceutical corporation based in
Basel , french: link=no, Bâlois(e), it, Basilese , neighboring_municipalities= Allschwil (BL), Hégenheim (FR-68), Binningen (BL), Birsfelden (BL), Bottmingen (BL), Huningue (FR-68), Münchenstein (BL), Muttenz (BL), Reinach (BL), Riehen (BS ...
, Switzerland and
Cambridge, Massachusetts Cambridge ( ) is a city in Middlesex County, Massachusetts, United States. As part of the Boston metropolitan area, the cities population of the 2020 U.S. census was 118,403, making it the fourth most populous city in the state, behind Boston ...
,
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
(global research).name="novartis.com">https://www.novartis.com/research-development/research-locations It is one of the largest pharmaceutical companies in the world. Novartis manufactures the drugs
clozapine Clozapine is a psychiatric medication and is the first atypical antipsychotic (also called second-generation antipsychotic). It is primarily used to treat people with schizophrenia and schizoaffective disorders who have had an inadequate respo ...
(Clozaril),
diclofenac Diclofenac, sold under the brand name Voltaren, among others, is a nonsteroidal anti-inflammatory drug (NSAID) used to treat pain and inflammatory diseases such as gout. It is taken by mouth or rectally in a suppository, used by injection, or ...
(Voltaren; sold to GlaxoSmithKline in 2015 deal),
carbamazepine Carbamazepine (CBZ), sold under the trade name Tegretol among others, is an anticonvulsant medication used primarily in the treatment of epilepsy and neuropathic pain. It is used as an adjunctive treatment in schizophrenia along with other m ...
(Tegretol),
valsartan Valsartan, sold under the brand name Diovan among others, is a medication used to treat high blood pressure, heart failure, and diabetic kidney disease. It belongs to a class of medications referred to as angiotensin II receptor blockers (ARB ...
(Diovan),
imatinib mesylate Imatinib, sold under the brand names Gleevec and Glivec (both marketed worldwide by Novartis) among others, is an oral chemotherapy medication used to treat cancer. Imatinib is a small molecule inhibitor targeting multiple receptor tyrosine kin ...
(Gleevec/Glivec),
cyclosporine Ciclosporin, also spelled cyclosporine and cyclosporin, is a calcineurin inhibitor, used as an immunosuppressant medication. It is a natural product. It is taken orally or intravenously for rheumatoid arthritis, psoriasis, Crohn's disease ...
(Neoral/Sandimmune),
letrozole Letrozole, sold under the brand name Femara among others, is an aromatase inhibitor medication that is used in the treatment of breast cancer. It was patented in 1986 and approved for medical use in 1996. In 2020, it was the 257th most common ...
(Femara),
methylphenidate Methylphenidate, sold under the brand names Ritalin and Concerta among others, is the most widely prescribed central nervous system (CNS) stimulant medication used to treat attention deficit hyperactivity disorder (ADHD) and, to a lesser exten ...
(Ritalin; production ceased 2020),
terbinafine Terbinafine, sold under the brand name Lamisil among others, is an antifungal medication used to treat pityriasis versicolor, fungal nail infections, and ringworm including jock itch and athlete's foot. It is either taken by mouth or applied to ...
(Lamisil),
deferasirox Deferasirox, sold under the brand name Exjade & Asunra (in injectable form) & Oleptiss (Tablet formulation) both by Novartis among others, is an oral iron chelator. Its main use is to reduce chronic iron overload in patients who are receiving l ...
(Exjade), and others. In
March 1996 File:1996 Events Collage.png, From left, clockwise: A bomb explodes at Centennial Olympic Park in Atlanta, set off by a radical anti-abortionist; The center fuel tank explodes on TWA Flight 800, causing the plane to crash and killing everyone on ...
, the companies
Ciba-Geigy Novartis AG is a Swiss-American multinational pharmaceutical corporation based in Basel, Switzerland and Cambridge, Massachusetts, United States (global research).name="novartis.com">https://www.novartis.com/research-development/research-loca ...
and
Sandoz Novartis AG is a Swiss-American multinational pharmaceutical corporation based in Basel, Switzerland and Cambridge, Massachusetts, United States (global research).name="novartis.com">https://www.novartis.com/research-development/research-loca ...
merged to form Novartis; the pharmaceutical and agrochemical divisions of both companies formed Novartis as an independent entity. Other Ciba-Geigy and Sandoz businesses were sold, or, like
Ciba Specialty Chemicals Ciba was a chemical company based in and near Basel, Switzerland. "Ciba" stood for "Chemische Industrie Basel" (Chemical Industries Basel). It was formed as the non-pharmaceuticals elements of Novartis were spun out in 1997, following the merg ...
, spun off as independent companies. The Sandoz brand disappeared for three years, but was revived in 2003 when Novartis consolidated its generic drugs businesses into a single subsidiary and named it Sandoz. Novartis divested its agrochemical and genetically modified crops business in 2000 with the spinout of Syngenta in partnership with
AstraZeneca AstraZeneca plc () is a British-Swedish multinational pharmaceutical and biotechnology company with its headquarters at the Cambridge Biomedical Campus in Cambridge, England. It has a portfolio of products for major diseases in areas includi ...
, which also divested its agrochemical business. Novartis is a full member of the
European Federation of Pharmaceutical Industries and Associations The European Federation of Pharmaceutical Industries and Associations (EFPIA) is a Brussels-based trade association and lobbying organisation, founded in 1978 and representing the research-based pharmaceutical industry operating in Europe. Throug ...
(EFPIA), the
International Federation of Pharmaceutical Manufacturers and Associations The International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) is a trade association that represents leading innovative pharmaceutical companies at the international level and in official relations with the United Nations. I ...
(IFPMA), and the
Pharmaceutical Research and Manufacturers of America Pharmaceutical Research and Manufacturers of America (PhRMA, pronounced ), formerly known as the Pharmaceutical Manufacturers Association, is a trade group representing companies in the pharmaceutical industry in the United States. Founded in 195 ...
(PhRMA).


Corporate structure

Novartis AG is a publicly traded Swiss holding company that operates through the Novartis Group. Novartis AG owns, directly or indirectly, all companies worldwide that operate as subsidiaries of the Novartis Group. Novartis's businesses are divided into three operating divisions: Innovative Medicines, Sandoz (generics) and Alcon (eyecare). In April 2019, Novartis spun off Alcon into a separate company. In August 2022, Novartis announced plans to spin off Sandoz as part of restructuring. The Innovative Medicines division comprises two business units: Novartis Pharmaceuticals and Novartis Oncology. Novartis operates directly through subsidiaries, each of which fall under one of the divisions, and that Novartis categorizes as fulfilling one or more of the following functions: Holding/Finance, Sales, Production, and Research Novartis AG also held 33.3 percent of the shares of
Roche F. Hoffmann-La Roche AG, commonly known as Roche, is a Swiss multinational healthcare company that operates worldwide under two divisions: Pharmaceuticals and Diagnostics. Its holding company, Roche Holding AG, has shares listed on the SIX ...
until 2022, however it did not exercise control over Roche. Novartis also has two significant license agreements with Genentech, a Roche subsidiary. One agreement is for
Lucentis Ranibizumab, sold under the brand name Lucentis among others, is a monoclonal antibody fragment ( Fab) created from the same parent mouse antibody as bevacizumab. It is an anti-angiogenic that is approved to treat the "wet" type of age-related ...
; the other is for
Xolair Omalizumab, sold under the brand name Xolair, is a medication used to treat asthma, nasal polyps, and urticaria (hives). Omalizumab is a recombinant DNA-derived humanized IgG1k monoclonal antibody that specifically binds to free human immunoglo ...
. In 2014, Novartis established a center in
Hyderabad Hyderabad ( ; , ) is the capital and largest city of the Indian state of Telangana and the ''de jure'' capital of Andhra Pradesh. It occupies on the Deccan Plateau along the banks of the Musi River, in the northern part of Southern India ...
, India, in order to offshore several of its R&D, clinical development, medical writing and administrative functions. The center supports the drug major's operations in the pharmaceuticals (Novartis), eye care (Alcon) and generic drugs segments (Sandoz).


Place in its market segments

Novartis is the world's second-largest pharmaceutical company by market cap in 2019. *Alcon: At the time Novartis bought Alcon, they had annual sales of $6.5 billion and a net income of $2 billion. In April 2019, Novartis completed the spin-off of Alcon as a separate commercial entity. *Sandoz: , Sandoz has been recognized as the world's second-largest generic drug company. Sandoz'
biosimilars A biosimilar (also known as follow-on biologic or subsequent entry biologic) is a biologic medical product that is almost an identical copy of an original product that is manufactured by a different company. Biosimilars are officially approved v ...
lead its field, getting the first biosimilar approvals in the EU. In 2018, Sandoz reported US$9.9 billion in net sales. In August 2022, Novartis announced plans to spin off Sandoz by second half of 2023. *Vaccines and Diagnostics Division: In 2013, Novartis announced it was considering selling the vaccines and diagnostics division off. This sale was completed in late 2015, and the division was integrated into CSL's BioCSL operation, with the combined entity trading as Seqirus. In 2018, Novartis sold its consumer healthcare joint venture vaccines division to GlaxoSmithKline for US$13.0 billion. *Consumer: Novartis is not a leader in the over-the-counter or animal health segments; its leading OTC brands are Excedrin and Theraflu, but sales have been slowed by problems at its key US manufacturing plant. In 2018, Novartis ranked second on the
Access to Medicine Index The Access to Medicine Index is a ranking system published biennially since 2008 by the Access to Medicine Foundation in Amsterdam, the Netherlands, an international not-for-profit organisation, funded by the Dutch Ministry of Foreign Affairs, the ...
, which "ranks companies on how readily they make their products available to the world's poor."


Finance

For the fiscal year 2020, Novartis reported earnings of US$8.072 billion, with an annual revenue of US$49.898 billion, an increase of 2.51 percent over the previous fiscal cycle. Novartis shares traded at over $84.38 per share, and its market capitalization was valued at $190.3B as of September 16, 2020.


History

Novartis was created in March 1996 from the merger of Ciba-Geigy and Sandoz Laboratories, 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 Fuchsine (sometimes spelled fuchsin) or rosaniline hydrochloride is a magenta dye with chemical formula C20H19N3·HCl.
in his factory for
silk Silk is a natural protein fiber, some forms of which can be woven into textiles. The protein fiber of silk is composed mainly of fibroin and is produced by certain insect larvae to form cocoons. The best-known silk is obtained from the ...
-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 An acronym is a word or name formed from the initial components of a longer name or phrase. Acronyms are usually formed from the initial letters of words, as in ''NATO'' (''North Atlantic Treaty Organization''), but sometimes use syllables, as ...
, 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 A dyewood is any of a number of varieties of wood which provide dyes for textiles and other purposes. Among the more important are: * Brazilwood or Brazil from Brazil, producing a red dye. *Catechu or cutch from Acacia wood, producing a dark bro ...
mill and a dye extraction plant. Two years later, they began the production of synthetic fuchsine. In 1901, they formed the
public limited company A public limited company (legally abbreviated to PLC or plc) is a type of public company under United Kingdom company law, some Commonwealth jurisdictions, and the Republic of Ireland. It is a limited liability company whose shares may be fre ...
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. .


Mid-1990s controversy

In the mid-1990s, state and federal health and environmental agencies identified an increased incidence of childhood cancers in Toms River,
New Jersey New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...
, from the 1970–1995 period. Multiple investigations by state and federal environmental and health agencies indicated that the likely source of the increased cancer risk was contamination from Toms River Chemical Plant (then operated by Ciba-Geigy), which had been in operation since 1952. The area was designated a
United States Environmental Protection Agency The Environmental Protection Agency (EPA) is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it ...
Superfund
site Site most often refers to: * Archaeological site * Campsite, a place used for overnight stay in an outdoor area * Construction site * Location, a point or an area on the Earth's surface or elsewhere * Website, a set of related web pages, typical ...
in 1983 after an underground plume of toxic chemicals was identified. The following year, a discharge pipe was shut down after a sinkhole at the corner of Bay Avenue and Vaughn Avenue revealed that it had been leaking. The plant ceased operation in 1996. A follow-up study from the 1996–2000 period indicated that while there were more cancer cases than expected, rates had significantly fallen and the difference was statistically insignificant compared to normal statewide cancer rates. Since 1996, the Toms River water system has been subject to the most stringent water testing in New Jersey and is considered safe for consumption.
Dan Fagin Dan Fagin (born February 1, 1963) is an American journalist who specializes in environmental science. He won the 2014 Pulitzer Prize for General Nonfiction for his best-selling book '' Toms River: A Story of Science and Salvation''. ''Toms River ...
's '' Toms River: A Story of Science and Salvation'', the 2014 Pulitzer Prize winning book, examined the issue of industrial pollution at the site in detail.


Sandoz

Sandoz is the generic drugs division of Novartis. Before the 1996 merger with Ciba-Geigy to form Novartis, Sandoz Pharmaceuticals (Sandoz AG) was a
pharmaceutical A medication (also called medicament, medicine, pharmaceutical drug, medicinal drug or simply drug) is a drug used to diagnose, cure, treat, or prevent disease. Drug therapy (pharmacotherapy) is an important part of the medical field an ...
company headquartered in
Basel , french: link=no, Bâlois(e), it, Basilese , neighboring_municipalities= Allschwil (BL), Hégenheim (FR-68), Binningen (BL), Birsfelden (BL), Bottmingen (BL), Huningue (FR-68), Münchenstein (BL), Muttenz (BL), Reinach (BL), Riehen (BS ...
, Switzerland (as was Ciba-Geigy), and was best known for developing drugs such as
Sandimmune Ciclosporin, also spelled cyclosporine and cyclosporin, is a calcineurin inhibitor, used as an immunosuppressant medication. It is a natural product. It is taken orally or intravenously for rheumatoid arthritis, psoriasis, Crohn's disease ...
for
organ transplantation Organ transplantation is a medical procedure in which an organ is removed from one body and placed in the body of a recipient, to replace a damaged or missing organ. The donor and recipient may be at the same location, or organs may be transpor ...
, the
antipsychotic Antipsychotics, also known as neuroleptics, are a class of psychotropic medication primarily used to manage psychosis (including delusions, hallucinations, paranoia or disordered thought), principally in schizophrenia but also in a range of ...
Clozaril Clozapine is a psychiatric medication and is the first atypical antipsychotic (also called second-generation antipsychotic). It is primarily used to treat people with schizophrenia and schizoaffective disorders who have had an inadequate respo ...
, Mellaril Tablets and Serentil Tablets for treating
psychiatric disorders A mental disorder, also referred to as a mental illness or psychiatric disorder, is a behavioral or mental pattern that causes significant distress or impairment of personal functioning. Such features may be persistent, relapsing and remitti ...
, and
Cafergot Caffeine/ergotamine (trade name Cafergot) is the proprietary name of a medication consisting of ergotamine tartrate and caffeine. This combination is used for the treatment of headaches, such as migraine headache. Use Correct timing of use ...
Tablets and Torecan Suppositories for treating
migraine headaches Migraine (, ) is a common neurological disorder characterized by recurrent headaches. Typically, the associated headache affects one side of the head, is pulsating in nature, may be moderate to severe in intensity, and could last from a few hou ...
. 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 manufactured by them were
alizarin Alizarin (also known as 1,2-dihydroxyanthraquinone, Mordant Red 11, C.I. 58000, and Turkey Red) is an organic compound with formula that has been used throughout history as a prominent red dye, principally for dyeing textile fabrics. Historic ...
blue and auramine. After Kern's death, the partnership became the corporation ''Chemische Fabrik vormals Sandoz'' in 1895. The company began producing the fever-reducing drug
antipyrin Phenazone ( INN and BAN; also known as phenazon, antipyrine (USAN), or analgesine) is an analgesic (pain reducing), antipyretic (fever reducing) and anti-inflammatory drug. While it predates the term, it is often classified as a nonsteroidal anti- ...
in the same year. In 1899, the company began producing the sugar substitute
saccharin Saccharin (''aka'' saccharine, Sodium sacchari) is an artificial sweetener with effectively no nutritional value. It is about 550 times as sweet as sucrose but has a bitter or metallic aftertaste, especially at high concentrations. Saccharin is ...
. Further pharmaceutical research began in 1917 under Arthur Stoll (1887–1971), who is the founder of Sandoz's pharmaceutical department in 1917. In 1918, Arthur Stoll isolated
ergotamine Ergotamine, sold under the brand names Cafergot (with caffeine) and Ergomar among others, is an ergopeptine and part of the ergot family of alkaloids; it is structurally and biochemically closely related to ergoline. It possesses structural sim ...
from ergot; the substance was eventually used to treat migraine and headaches and was introduced under the trade name Gynergen in 1921. Between the World Wars, Gynergen (1921) and Calcium-Sandoz (1929) were brought to market. Sandoz also produced chemicals for textiles, paper, and
leather Leather is a strong, flexible and durable material obtained from the tanning, or chemical treatment, of animal skins and hides to prevent decay. The most common leathers come from cattle, sheep, goats, equine animals, buffalo, pigs and hog ...
, beginning in 1929. In 1939, the company began producing agricultural chemicals. The psychedelic effects of
lysergic acid diethylamide Lysergic acid diethylamide (LSD), also known colloquially as acid, is a potent psychedelic drug. Effects typically include intensified thoughts, emotions, and sensory perception. At sufficiently high dosages LSD manifests primarily mental, vi ...
(LSD) were discovered at the Sandoz laboratories in 1943 by Arthur Stoll and
Albert Hofmann Albert Hofmann (11 January 1906 – 29 April 2008) was a Swiss chemist known for being the first to synthesize, ingest, and learn of the psychedelic effects of lysergic acid diethylamide (LSD). Hofmann's team also isolated, named and synthesi ...
. Sandoz began clinical trials and marketed the substance, from 1947 through the mid-1960s, under the name ''Delysid'' as a
psychiatric Psychiatry is the medical specialty devoted to the diagnosis, prevention, and treatment of mental disorders. These include various maladaptations related to mood, behaviour, cognition, and perceptions. See glossary of psychiatry. Initial psy ...
drug, thought useful for treating a wide variety of mental ailments, ranging from
alcoholism Alcoholism is, broadly, any drinking of alcohol that results in significant mental or physical health problems. Because there is disagreement on the definition of the word ''alcoholism'', it is not a recognized diagnostic entity. Predomi ...
to sexual deviancy. Sandoz suggested in its marketing literature that psychiatrists take LSD themselves, to gain a better subjective understanding of the
schizophrenic Schizophrenia is a mental disorder characterized by continuous or relapsing episodes of psychosis. Major symptoms include hallucinations (typically hearing voices), delusions, and disorganized thinking. Other symptoms include social withdr ...
experience, and many did exactly that and so did other scientific researchers. The Sandoz product received mass publicity as early as 1954, in a
Time Magazine ''Time'' (stylized in all caps) is an American news magazine based in New York City. For nearly a century, it was published weekly, but starting in March 2020 it transitioned to every other week. It was first published in New York City on Ma ...
feature. Research on LSD peaked in the 1950s and early 1960s. The
CIA The Central Intelligence Agency (CIA ), known informally as the Agency and historically as the Company, is a civilian foreign intelligence service of the federal government of the United States, officially tasked with gathering, processing, ...
purchased quantities of LSD from Sandoz for use in its illegal human experimentation program known as
MKUltra Project MKUltra (or MK-Ultra) was an illegal human experimentation program designed and undertaken by the U.S. Central Intelligence Agency (CIA), intended to develop procedures and identify drugs that could be used in interrogations to weak ...
. Sandoz withdrew the drug from the market in 1965. The drug became a cultural novelty of the 1960s after psychologist
Timothy Leary Timothy Francis Leary (October 22, 1920 – May 31, 1996) was an American psychologist and author known for his strong advocacy of psychedelic drugs. Evaluations of Leary are polarized, ranging from bold oracle to publicity hound. He was "a her ...
at
Harvard University Harvard University is a private Ivy League research university in Cambridge, Massachusetts. Founded in 1636 as Harvard College and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of high ...
began to promote its use for recreational and spiritual experiences among the general public. Sandoz opened its first foreign offices in 1964. In 1967, Sandoz merged with Wander AG (known for Ovomaltine and
Isostar Isostar is a sports drink sold in Europe. It is similar to Gatorade and Powerade in that it hydrates and provides energy through glucose. Isostar was first created in Switzerland in 1977. Products Isostar is sold in many different variet ...
). Sandoz acquired the companies Delmark,
Wasabröd Wasabröd is a Swedish producer of Scandinavian style crispbread ( sv, knäckebröd). The Wasabröd company has been in business since 1919, opening its first bakery in the city of Skellefteå. Since 1983 it has been under foreign ownership, ...
(a
Swedish Swedish or ' may refer to: Anything from or related to Sweden, a country in Northern Europe. Or, specifically: * Swedish language, a North Germanic language spoken primarily in Sweden and Finland ** Swedish alphabet, the official alphabet used by ...
manufacturer of
crisp bread Crispbread ( sv, knäckebröd (lit. crack bread), ''hårt bröd'' (hard bread), ''hårdbröd'', ''spisbröd'' (stove bread), ''knäcke'', da, knækbrød, no, knekkebrød, fi, näkkileipä or näkkäri, et, näkileib, is, hrökkbrauð, fo, k ...
), and
Gerber Products Company Gerber Products Company is an American purveyor of baby food and baby products headquartered in Florham Park, New Jersey, with plans to relocate to Arlington, Virginia. Gerber is a subsidiary of Nestlé. Other Gerber products currently produced ...
(a
baby food Baby food is any soft easily consumed food other than breastmilk or infant formula that is made specifically for human babies between four and six months and two years old. The food comes in many varieties and flavors that are purchased ready- ...
company). On 1 November 1986, a fire broke out in a production plant storage room, which led to the
Sandoz chemical spill The Sandoz chemical spill was a major environmental disaster caused by a fire and its subsequent extinguishing at Sandoz agrochemical storehouse in the Schweizerhalle industrial complex, Basel-Landschaft, Switzerland, on 1 November 1986, which r ...
and a large amount of pesticide being released into the upper
Rhine ), Surselva, Graubünden, Switzerland , source1_coordinates= , source1_elevation = , source2 = Rein Posteriur/Hinterrhein , source2_location = Paradies Glacier, Graubünden, Switzerland , source2_coordinates= , so ...
river. This exposure killed many fish and other aquatic life. In 1995, Sandoz spun off its
specialty chemicals Speciality chemicals (also called specialties or effect chemicals) are particular chemical products which provide a wide variety of effects on which many other industry sectors rely. Some of the categories of speciality chemicals are adhesives, ag ...
business to form Clariant. In 1997, Clariant merged with the specialty chemicals business that was spun off from
Hoechst AG Hoechst AG () was a German chemicals then life-sciences company that became Aventis Deutschland after its merger with France's Rhône-Poulenc S.A. in 1999. With the new company's 2004 merger with Sanofi-Synthélabo, it became a subsidiary of th ...
in Germany.


Merger

In 1996 Ciba-Geigy merged with Sandoz, with the pharmaceutical and agrochemical divisions of both staying together to form Novartis. Other Ciba-Geigy and Sandoz businesses were spun off as independent companies.Glenn Collins for ''The New York Times''. 7 March 199
2 Swiss Drug Giants In a Surprise Merger To Be 2d in World
notably
Ciba Specialty Chemicals Ciba was a chemical company based in and near Basel, Switzerland. "Ciba" stood for "Chemische Industrie Basel" (Chemical Industries Basel). It was formed as the non-pharmaceuticals elements of Novartis were spun out in 1997, following the merg ...
.Lawrence M. Fisher for strategy + business. 1 April 199
Post-Merger Integration: How Novartis Became No. 1
Sandoz's Master Builders Technologies, a producer of chemicals for the construction industry, was sold off to SKW Trostberg A.G., a subsidiary of the German energy company VIAG, while its North American corn herbicide business became part of the German chemical maker
BASF BASF SE () is a German multinational chemical company and the largest chemical producer in the world. Its headquarters is located in Ludwigshafen, Germany. The BASF Group comprises subsidiaries and joint ventures in more than 80 countries ...
.


Post-merger

In 1998, the company entered into a
biotechnology Biotechnology is the integration of natural sciences and engineering sciences in order to achieve the application of organisms, cells, parts thereof and molecular analogues for products and services. The term ''biotechnology'' was first used ...
licensing agreement with the
University of California at Berkeley The University of California, Berkeley (UC Berkeley, Berkeley, Cal, or California) is a public land-grant research university in Berkeley, California. Established in 1868 as the University of California, it is the state's first land-grant uni ...
Department of Plant and Microbial
Biology Biology is the scientific study of life. It is a natural science with a broad scope but has several unifying themes that tie it together as a single, coherent field. For instance, all organisms are made up of cells that process hereditary i ...
. Critics of the agreement expressed concern over prospects that the agreement would diminish academic objectivity, or lead to the commercialization of
genetically modified Genetic engineering, also called genetic modification or genetic manipulation, is the modification and manipulation of an organism's genes using technology. It is a set of technologies used to change the genetic makeup of cells, including ...
plants. The agreement expired in 2003.


2000–2010

In 2000, Novartis and
AstraZeneca AstraZeneca plc () is a British-Swedish multinational pharmaceutical and biotechnology company with its headquarters at the Cambridge Biomedical Campus in Cambridge, England. It has a portfolio of products for major diseases in areas includi ...
combined their agrobusiness divisions to create a new company, Syngenta. In 2003, Novartis organized all its generics businesses into one division, and merged some of its subsidiaries into one company, reusing the predecessor brand name of Sandoz. In 2005, Novartis expanded its subsidiary Sandoz significantly through the US$8.29 billion acquisition of Hexal, one of Germany's leading generic drug companies, and Eon Labs, a fast-growing United States generic pharmaceutical company. In 2006, Novartis acquired the California-based
Chiron Corporation Chiron Corporation ( ) was an American multinational biotechnology firm founded in 1981, based in Emeryville, California, that was acquired by Novartis on April 20, 2006. It had offices and facilities in eighteen countries on five continents. ...
. Chiron had been divided into three units: Chiron Vaccines, Chiron Blood Testing, and Chiron BioPharmaceuticals. The biopharmaceutical unit was integrated into Novartis Pharmaceuticals, while the vaccines and blood testing units were made into a new Novartis Vaccines and Diagnostics division. Also in 2006, Sandoz became the first company to have a
biosimilar A biosimilar (also known as follow-on biologic or subsequent entry biologic) is a biologic medical product that is almost an identical copy of an original product that is manufactured by a different company. Biosimilars are officially approved v ...
drug approved in Europe with its recombinant human growth hormone drug. In 2007, Novartis sold the
Gerber Products Company Gerber Products Company is an American purveyor of baby food and baby products headquartered in Florham Park, New Jersey, with plans to relocate to Arlington, Virginia. Gerber is a subsidiary of Nestlé. Other Gerber products currently produced ...
to
Nestlé Nestlé S.A. (; ; ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other metrics, since ...
as part of its continuing effort to shed old Sandoz and Ciba-Geigy businesses and focus on healthcare. In 2009, Novartis reached an agreement to acquire an 85 percent stake in the Chinese vaccines company Zhejiang Tianyuan Bio-Pharmaceutical Co., Ltd. as part of a strategic initiative to build a vaccines industry leader in this country and expand the group's limited presence in this fast-growing market segment. This proposed acquisition will require government and regulatory approvals in China. In 2010, Novartis offered to pay US$39.3 billion to fully acquire Alcon, the world's largest eye-care company, including a majority stake held by
Nestlé Nestlé S.A. (; ; ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest publicly held food company in the world, measured by revenue and other metrics, since ...
. Novartis had bought 25 percent of Alcon in 2008. Novartis created a new division and called it Alcon, under which it placed its CIBA VISION subsidiary and Novartis Ophthalmics, which became the second-largest division of Novartis. The total cost for Alcon amounted to $60 billion.


2011–present

In 2011, Novartis acquired the medical laboratory diagnostics company Genoptix to "serve as a strong foundation for our (Novartis') individualized treatment programs". In 2012, the Company cut ~2000 positions in the United States, primarily in sales, in response to anticipated revenue downturns from the hypertension drug
Diovan Valsartan, sold under the brand name Diovan among others, is a medication used to treat high blood pressure, heart failure, and diabetic kidney disease. It belongs to a class of medications referred to as angiotensin II receptor blockers (ARBs ...
, which was losing patent protection, and the realization that the anticipated successor to Diovan, Rasilez, was failing in clinical trials. The 2012 personnel reductions follow ~2000 cut positions in Switzerland and the United States in 2011, ~1400 cut positions in the United States in 2010, and a reduction of "thousands" and several site closures in previous years. Also in 2012, Novartis became the biggest manufacturer of generic skin care medicine, after agreeing to buy Fougera Pharmaceuticals for $1.525 billion in cash. In 2013, the Indian Supreme Court issued a decision rejecting Novartis' patent application in India on the final form of
Gleevec Imatinib, sold under the brand names Gleevec and Glivec (both marketed worldwide by Novartis) among others, is an oral chemotherapy medication used to treat cancer. Imatinib is a small molecule inhibitor targeting multiple receptor tyrosine kin ...
, Novartis's cancer drug; the case caused great controversy. In 2013, Novartis was sued again by the US government, this time for allegedly bribing doctors for a decade so that their patients are steered towards the company's drugs. In January 2014, Novartis announced plans to cut 500 jobs from its pharmaceuticals division. In February 2014, Novartis announced that it acquired CoStim Pharmaceuticals. In May 2014, Novartis purchased the rights to market Ophthotech's Fovista (an anti-
PDGF Platelet-derived growth factor (PDGF) is one among numerous growth factors that regulate cell growth and division. In particular, PDGF plays a significant role in blood vessel formation, the growth of blood vessels from already-existing blood v ...
aptamer Aptamers are short sequences of artificial DNA, RNA, XNA, or peptide that bind a specific target molecule, or family of target molecules. They exhibit a range of affinities ( KD in the pM to μM range), with little or no off-target bindin ...
, also being investigated for use in combination with anti-
VEGF Vascular endothelial growth factor (VEGF, ), originally known as vascular permeability factor (VPF), is a signal protein produced by many cells that stimulates the formation of blood vessels. To be specific, VEGF is a sub-family of growth factors ...
treatments) outside the U.S. for up to $1 billion. Novartis acquired exclusive rights to market the eye drug outside of the states while retaining U.S. marketing rights. The company agreed to pay Ophthotech $200 million upfront, and $130 million in milestone payments relating to Phase III trials. Ophthotech is also eligible to receive up to $300 million dependent upon future marketing approval milestones outside of America and up to $400 million relating to sales milestones. In September 2014, Ophthotech received its first $50 million phase III trial milestone payment from Novartis. In April 2014, Novartis announced that it would acquire GlaxoSmithKline's cancer drug business for $16 billion as well as selling its vaccines business to GlaxoSmithKline for $7.1 billion. In August 2014 ''Genetic Engineering & Biotechnology News'' reported that Novartis had acquired a 15 percent stake in Gamida Cell for $35 million, with the option to purchase the whole company for approximately $165 million. In October 2014, Novartis announced its intention to sell its influenza vaccine business (inclusive of its development pipeline), subject to regulatory approval, to CSL for $275 million. In March 2015, the company announced BioPharma had completed its acquisition of two Phase III cancer-drug candidates; the
MEK inhibitor A MEK inhibitor is a chemical or drug that inhibits the mitogen-activated protein kinase kinase enzymes MEK1 and/or MEK2. They can be used to affect the MAPK/ERK pathway which is often overactive in some cancers. (See MAPK/ERK pathway#Clinical sign ...
binimetinib (MEK 162) and the BRAF inhibitor encorafenib (LGX818), for $85 million. In addition, the company sold its
RNAi RNA interference (RNAi) is a biological process in which RNA molecules are involved in sequence-specific suppression of gene expression by double-stranded RNA, through translational or transcriptional repression. Historically, RNAi was known by ...
portfolio to
Arrowhead Research Arrowhead Pharmaceuticals is a publicly traded biopharmaceutical company based in Pasadena, California. Arrowhead’s products in development act through RNA interference (RNAi) mechanisms of action. The company focuses on treatments for hepatiti ...
for $10 million and $25 million in stock. In June, the company announced it would acquire Spinifex Pharmaceuticals for more than $200 million. In August, the company acquired the remaining rights to the
CD20 B-lymphocyte antigen CD20 or CD20 is expressed on the surface of all B-cells beginning at the pro-B phase ( CD45R+, CD117+) and progressively increasing in concentration until maturity. In humans CD20 is encoded by the ''MS4A1'' gene. This gene ...
monoclonal antibody Ofatumumab from GlaxoSmithKline for up to $1 billion. In October the company acquired Admune Therapeutics for an undisclosed sum, as well as licensing PBF-509, an adenosine
A2A receptor The adenosine A2A receptor, also known as ADORA2A, is an adenosine receptor, and also denotes the human gene encoding it. Structure This protein is a member of the G protein-coupled receptor (GPCR) family which possess seven transmembrane alph ...
antagonist which is in Phase I clinical trials for non-small cell lung cancer, from Palobiofarma. In November 2016, the company announced it would acquire Selexys Pharmaceuticals for $665 million. In December, the company acquired
Encore Vision An encore is an additional performance given by performers after the planned show has ended, usually in response to extended applause from the audience.Lalange Cochrane, in ''Oxford Companion to Music'', Alison Latham, ed., Oxford University Pres ...
, gaining the company's principle compound, EV06, is a first-in-class topical therapy for
presbyopia Presbyopia is physiological insufficiency of accommodation associated with the aging of the eye that results in progressively worsening ability to focus clearly on close objects. Also known as age-related farsightedness (or age-related long si ...
. In December Novartis acquired Ziarco Group Limited, bolstering its presence in eczema treatments. In late October 2017, ''
Reuters Reuters ( ) is a news agency owned by Thomson Reuters Corporation. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide. Reuters is one of the largest news agencies in the world. The agency was esta ...
'' announced that Novartis would acquire Advanced Accelerator Applications for $3.9 billion, paying $41 per ordinary share and $82 per American depositary share representing a 47 percent premium. In March 2018, GlaxoSmithKline announced that it has reached an agreement with Novartis to acquire Novartis' 36.5 percent stake in their Consumer Healthcare Joint Venture for $13 billion (£9.2 billion). In April of the same year, the business utilised some of the proceeds from the aforementioned GlaxoSmithKline deal to acquire
Avexis Novartis Gene Therapies, until 2020 known as AveXis, is a biotechnology company that develops treatments for rare neurological genetic disorders. It was founded in Dallas, Texas, United States in 2012 by John Carbona after reorganizing a compan ...
for $218 per share or $8.7 billion in total, gaining the lead compound
AVXS-101 Onasemnogene abeparvovec, sold under the brand name Zolgensma, is a gene therapy medication used to treat spinal muscular atrophy (SMA). It is used as a one-time infusion into a vein. Onasemnogene abeparvovec works by providing a new copy of ...
used to treat spinal muscular atrophy. In August 2018, Novartis signed a deal with Laekna-a Shanghai-based pharmaceutical company for its two clinical-stage cancer drugs. Novartis gave Laekna the exclusive international rights for the drugs that are oral pan-Akt
kinase inhibitor A protein kinase inhibitor is a type of enzyme inhibitor that blocks the action of one or more protein kinases. Protein kinases are enzymes that phosphorylate (add a phosphate, or PO4, group) to a protein and can modulate its function. The phospha ...
s namely; afuresertib (ASB138) and uprosertib (UPB795). In mid-October, the company announced it would acquire Endocyte Inc for $2.1 billion ($24 per share) merging it with a newly created subsidiary. Endocyte will bolster Novartis' offering in its radiopharmaceuticals business, with Endocyte's first in class candidate 177Lu-PSMA-617 being targeted against metastatic castration-resistant prostate cancer. In late December the company announced it would acquire France-based contract manufacturer, CellforCure from
LFB The London Fire Brigade (LFB) is the Fire department, fire and rescue service for London, the capital of the United Kingdom. It was formed by the Metropolitan Fire Brigade Act 1865, under the leadership of superintendent Eyre Massey Shaw. It ha ...
, boosting its capacity to produce cell and gene therapies. On April 9, 2019, Novartis announced that it had completed the spin-off of Alcon as a separate commercial entity. Alcon was listed on the SIX exchange in Switzerland and NYSE exchange in the U.S. Novartis announced during late 2019 a five-year
artificial intelligence Artificial intelligence (AI) is intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by animals and humans. Example tasks in which this is done include speech r ...
"alliance" with Microsoft. The companies aim to create applications for "Microsoft's AI capabilities", in turn improving the other's drug development processes. Microsoft seeks to "test AI products it is already working on in 'real-life' situations". The deal will pursue solutions for "organizing and using" data generated from Novartis' laboratory experiments, clinical trials, and manufacturing plants. It will also look at improving manufacturing of
Chimeric antigen receptor T cell In biology, chimeric antigen receptors (CARs)—also known as chimeric immunoreceptors, chimeric T cell receptors or artificial T cell receptors—are receptor proteins that have been engineered to give T cells the new ability to target a specifi ...
(CAR T cells). Finally, the deal "will also apply AI to generative chemistry to enhance drug design". In November 2019, Sandoz announced it would acquire the Japanese business of Aspen Global inc for €300 million (around $330 million), boosting the business's presence in Asia. In late November 2019, the business announced it would acquire The Medicines Company for ($85 per share) in order to acquire amongst other assets, the cholesterol lowering therapy;
inclisiran Inclisiran, sold under the brand name Leqvio, is a medication for the treatment of people with atherosclerotic cardiovascular disease (ASCVD), ASCVD risk-equivalents, and heterozygous familial hypercholesterolemia (HeFH). It is a small interferi ...
. In April 2020, the company announced it would acquire Amblyotech. In September 2020, Novartis was imposed a fine of €385 million by the French competition authority on accusations of abusive practices to preserve sales of
Lucentis Ranibizumab, sold under the brand name Lucentis among others, is a monoclonal antibody fragment ( Fab) created from the same parent mouse antibody as bevacizumab. It is an anti-angiogenic that is approved to treat the "wet" type of age-related ...
over a cheaper drug. Also in September,
BioNTech BioNTech SE ( ; or short for Biopharmaceutical New Technologies) is a German biotechnology company based in Mainz that develops and manufactures active immunotherapies for patient-specific approaches to the treatment of diseases. It develop ...
has leased a large production facility from Novartis to follow all advance demands for its coronavirus vaccine in Europe and sell it to China. In October Novartis announced it would acquire Vedere Bio for $280 million boosting the businesses cell and gene therapy offerings. In October 2020, as part of a joint venture to develop therapeutic drugs to combat
COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was identified in Wuhan, China, in December 2019. The disease quickly ...
, Novartis bought 6% of all shares outstanding in Swiss
DARPin DARPins (an acronym for designed ankyrin repeat proteins) are genetically engineered antibody mimetic proteins typically exhibiting highly specific and high-affinity target protein binding. They are derived from natural ankyrin repeat proteins, on ...
research company
Molecular Partners Molecular Partners AG is a clinical-stage biopharmaceutical company based in Zürich, Switzerland. The company is developing a new class of potent, specific and versatile small-protein therapies called DARPins, with potential clinical application ...
AG at CHF 23 per share. In December 2020, Novartis announced it would acquir
Cadent Therapeutics
for up to $770 million, gaining full rights to CAD-9303 (a NMDAr positive allosteric modulator), MIJ-821 (a NMDAr negative allosteric modulator) and CAD-1883 a clinical-stage
SK channel SK channels (small conductance calcium-activated potassium channels) are a subfamily of calcium-activated potassium channels. They are so called because of their small single channel conductance in the order of 10 pS. SK channels are a type of i ...
positive allosteric modulator. In September 2021, the company announced it would acquire gene-therapy business, Arctos Medical, broadening its
optogenetics Optogenetics is a biological technique to control the activity of neurons or other cell types with light. This is achieved by expression of light-sensitive ion channels, pumps or enzymes specifically in the target cells. On the level of individ ...
range. In December, Novartis announced it would purchase Gyroscope Therapeutics from health care investment company, Syncona Ltd, for up to $1.5 billion. In February 2022, New York City-based biotechnology company Cambrian Biopharma announced it had licensed rights to mTOR inhibitor programs from Novartis. As part of the deal, Cambrian was setting up a subsidiary called Tornado Therapeutics. In August 2022, the company announced its plan to spin off Sandoz generic drugs unit to form a publicly traded business as part of a restructuring. With the unit having generated US$9.69billion in 2021, the spin-off would create the biggest generic drugs company in Europe by sales.


Acquisition history

*Novartis **Novartis (Merger of Ciba-Geigy and Sandoz, 1996) ***
Ciba-Geigy Novartis AG is a Swiss-American multinational pharmaceutical corporation based in Basel, Switzerland and Cambridge, Massachusetts, United States (global research).name="novartis.com">https://www.novartis.com/research-development/research-loca ...
****J. R. Geigy Ltd (Merged 1971) ****CIBA (Merged 1971) ***
Sandoz Novartis AG is a Swiss-American multinational pharmaceutical corporation based in Basel, Switzerland and Cambridge, Massachusetts, United States (global research).name="novartis.com">https://www.novartis.com/research-development/research-loca ...
****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)


Research

The company's global research operations, called "Novartis Institutes for BioMedical Research (NIBR)" have their global headquarters in
Cambridge, Massachusetts Cambridge ( ) is a city in Middlesex County, Massachusetts, United States. As part of the Boston metropolitan area, the cities population of the 2020 U.S. census was 118,403, making it the fourth most populous city in the state, behind Boston ...
, United States. Two research institutes reside within NIBR that focus on diseases in the developing world: Novartis Institute for Tropical Diseases, which works on tuberculosis, dengue, and malaria, and Novartis Vaccines Institute for Global Health, which works on salmonella typhi (typhoid fever) and shigella. Novartis is also involved in publicly funded collaborative research projects, with other industrial and academic partners. One example in the area of non-clinical safety assessment is the InnoMed PredTox project. The company is expanding its activities in joint research projects within the framework of the
Innovative Medicines Initiative The Innovative Medicines Initiative (IMI) is a European initiative to improve the competitive situation of the European Union in the field of pharmaceutical research. The IMI is a joint initiative ( public-private partnership) of the DG Researc ...
of
EFPIA The European Federation of Pharmaceutical Industries and Associations (EFPIA) is a Brussels-based trade association and lobbying organisation, founded in 1978 and representing the research-based pharmaceutical industry operating in Europe. Throug ...
and the
European Commission The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body ...
. Novartis is working with
Science 37 Science 37 is an American clinical research company that specializes in decentralized clinical trials. The Science 37 operating system enables universal access to clinical research—making it easier for patients and providers to participate and a ...
in order to allow video based telemedicine visits instead of physical traveling to clinics for patients. It is planning for ten clinical trials over three years using
mobile technology Mobile technology is the technology used for cellular communication. Mobile technology has evolved rapidly over the past few years. Since the start of this millennium, a standard mobile device has gone from being no more than a simple two-way pag ...
to help free patients from burdensome hospital trips.


Products


Pharmaceuticals


Consumer health

* Benefiber * Bialcol Alcohol *
Buckley's W. K. Buckley Limited is a corporation operating in Canada that manufactures medicines for health problems such as the common cold. They also have children's medicine which are sold under the brand Jack & Jill. The company is located in Mississauga ...
cold and cough formula * Bufferin *
ChestEze ChestEze (or Do-Do ChestEze) is a British over-the-counter substance, over-the-counter pharmaceutical product manufactured by Novartis for "relief of Bronchiole, bronchial cough, wheeze, wheezing, Dyspnea, breathlessness and other symptoms of asthma ...
* Comtrex cold and cough * Denavir/Vectavir * Desenex * Doan's pain relief * Ex-Lax * Excedrin * Fenistil * Gas-X * Habitrol *
Keri Keri () is a Hebrew term which literally means "happenstance", "frivolity" or "contrariness" and has come to mean seminal emission. The term is generally used in Jewish law to refer specifically to the regulations and rituals concerning the emiss ...
skin care * Lamisil foot care * Lipactin
herpes Herpes simplex is a viral infection caused by the herpes simplex virus. Infections are categorized based on the part of the body infected. Oral herpes involves the face or mouth. It may result in small blisters in groups often called cold ...
symptomatic treatment *
Maalox Maalox is a brand of antacid owned by Sanofi. Their main product is a flavored liquid containing a suspension of aluminum hydroxide and magnesium hydroxide, which act to neutralize or reduce stomach acid, for the purpose of relieving the symptom ...
* Nicotinell *
No-doz Caffeine is a central nervous system (CNS) stimulant of the methylxanthine class. It is mainly used recreationally as a cognitive enhancer, increasing alertness and attentional performance. Caffeine acts by blocking binding of adenosine ...
* Quinvaxem (
Pentavalent vaccine A pentavalent vaccine, also known as a 5-in-1 vaccine, is a combination vaccine with five individual vaccines conjugated into one. Pentavalent vaccine frequently refers to the 5-in-1 vaccine protecting against diphtheria, tetanus, whooping coug ...
) * Otrivine * Prevacid 24HR *
Savlon Savlon is a brand of antibacterial personal care products with the active ingredients of cetrimide and chlorhexidine gluconate. Commonly sold as a cream, the product range also includes antiseptic sprays, sticking plasters and other antiseptic ...
* Tavist * Theraflu * Vagistat * Tixylix *
Voltaren Diclofenac, sold under the brand name Voltaren, among others, is a nonsteroidal anti-inflammatory drug (NSAID) used to treat pain and inflammatory diseases such as gout. It is taken by mouth or rectally in a suppository, used by injection, o ...
In January 2009, the
United States Department of Health and Human Services The United States Department of Health and Human Services (HHS) is a cabinet-level executive branch department of the U.S. federal government created to protect the health of all Americans and providing essential human services. Its motto is ...
awarded Novartis a $486 million contract for construction of the first US plant to produce cell-based influenza vaccine, to be located in Holly Springs, North Carolina. The stated goal of this program is the capability of producing 150,000,000 doses of pandemic vaccine within six months of declaring a flu pandemic. In April 2014, Novartis divested its consumer health section with $3,5 billion worth of assets into a new joint venture with GlaxoSmithKline, named GSK Consumer Healthcare, of which Novartis will hold a 36,5% stake. In March 2018, GSK announced that it has reached an agreement with Novartis to acquire Novartis' 36.5% stake in their Consumer Healthcare Joint Venture for $13 billion (£9.2 billion).


Animal health


Pet care

* Interceptor ( Milbemycin oxime), oral worm control product * Sentinel Flavor Tabs (Milbemycin oxime,
Lufenuron Lufenuron is the active ingredient in the veterinary flea control medication Program, and one of the two active ingredients in the flea, heartworm, ringworm and anthelmintic medicine milbemycin oxime/lufenuron (Sentinel). Lufenuron is stored in ...
), oral flea control product * Deramaxx ( Deracoxib), oral treatment for pain and inflammation from osteoarthritis in dogs * Capstar (
Nitenpyram Nitenpyram is a chemical frequently used as an insecticide in agriculture and veterinary medicine. The compound is an insect neurotoxin belonging to the class of neonicotinoids which works by blocking neural signaling of the central nervous syst ...
), oral tablet for flea control * Milbemax ( Milbemycin oxime,
Praziquantel Praziquantel (PZQ), sold under the brandname Biltricide among others, is a medication used to treat a number of types of parasitic worm infections in mammals, birds, amphibians, reptiles, and fish. In humans specifically, it is used to treat sc ...
), oral worm treatment * Program (
Lufenuron Lufenuron is the active ingredient in the veterinary flea control medication Program, and one of the two active ingredients in the flea, heartworm, ringworm and anthelmintic medicine milbemycin oxime/lufenuron (Sentinel). Lufenuron is stored in ...
), oral tablet for flea control


Livestock

* Acatalk Duostar (Fluazuron,
Ivermectin Ivermectin (, '' EYE-vər-MEK-tin'') is an antiparasitic drug. After its discovery in 1975, its first uses were in veterinary medicine to prevent and treat heartworm and acariasis. Approved for human use in 1987, today it is used to treat i ...
), tick control for cattle * CLiK (Dicyclanil), blowfly control for sheep * Denagard ( Tiamulin), antibiotic for the treatment of swine dysentery associated with '' Brachyspira'' (formerly Serpulina or Treponema) * Fasinex (
Triclabendazole Triclabendazole, sold under the brand name Egaten among others, is a medication used to treat fascioliasis and paragonimiasis. It is very effective for both conditions. Treatment in hospital may be required. It is taken by mouth with typically ...
), oral drench for cattle that is used for the treatment and control of all three stages of liver fluke * ViraShield, For use in healthy cattle, including pregnant cows and heifers, as an aid in the prevention of disease caused by infectious bovine rhinotracheitis (IBR), bovine virus diarrhoea (BVD Type 1 and BVD Type 2), parainfluenza Type 3 (PI3), and bovine respiratory syncytial (BRSV) viruses


Bioprotection (insect and rodent control)

* Actara (
Thiamethoxam Thiamethoxam is the ISO common name for a mixture of ''cis-trans'' isomers used as a systemic insecticide of the neonicotinoid class. It has a broad spectrum of activity against many types of insects and can be used as a seed dressing. History ...
) * Atrazine (
Atrazine Atrazine is a chlorinated herbicide of the triazine class. It is used to prevent pre-emergence broadleaf weeds in crops such as maize (corn), soybean and sugarcane and on turf, such as golf courses and residential lawns. Atrazine's primary manu ...
) * Larvadex ( Cyromazine) * Neporex ( Cyromazine) * Oxyfly (
Lambda-cyhalothrin Cyhalothrin is the ISO common name for an organic compound that, in specific isomeric forms, is used as a pesticide. It is a pyrethroid, a class of synthetic insecticides that mimic the structure and properties of the naturally occurring insectic ...
) * Virusnip ( Potassium monopersulfate)


Controversies and criticism


Challenge to India's patent laws

Novartis fought a seven-year, controversial battle to patent
Gleevec Imatinib, sold under the brand names Gleevec and Glivec (both marketed worldwide by Novartis) among others, is an oral chemotherapy medication used to treat cancer. Imatinib is a small molecule inhibitor targeting multiple receptor tyrosine kin ...
in India, and took the case all the way to the
Indian Supreme Court The Supreme Court of India ( IAST: ) is the supreme judicial authority of India and is the highest court of the Republic of India under the constitution. It is the most senior constitutional court, has the final decision in all legal matters ...
, where the patent application was finally rejected. The patent application at the center of the case was filed by Novartis in India in 1998, after India had agreed to enter the
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and ...
and to abide by worldwide intellectual property standards under the
TRIPS The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all the member nations of the World Trade Organization (WTO). It establishes minimum standards for the regulation by nat ...
agreement. As part of this agreement, India made changes to its patent law; the biggest of which was that prior to these changes, patents on products were not allowed, afterwards they were, albeit with restrictions. These changes came into effect in 2005, so Novartis' patent application waited in a "mailbox" with others until then, under procedures that India instituted to manage the transition. India also passed certain amendments to its patent law in 2005, just before the laws came into effect, which played a key role in the rejection of the patent application. The patent application claimed the final form of Gleevec (the beta crystalline form of imatinib
mesylate In organosulfur chemistry, a mesylate is any salt or ester of methanesulfonic acid (). In salts, the mesylate is present as the anion. When modifying the international nonproprietary name of a pharmaceutical substance containing the group ...
). In 1993 before India allowed patents on products, Novartis had patented imatinib, with
salts In chemistry, a salt is a chemical compound consisting of an ionic assembly of positively charged cations and negatively charged anions, which results in a compound with no net electric charge. A common example is table salt, with positively c ...
vaguely specified, in many countries but could not patent it in India. The key differences between the two patent applications were that the 1998 patent application specified the counterion (Gleevec is a specific salt - imatinib mesylate) while the 1993 patent application did not claim any specific salts nor did it mention mesylate, and the 1998 patent application specified the solid form of Gleevec - the way the individual molecules are packed together into a solid when the drug itself is manufactured (this is separate from processes by which the drug itself is formulated into pills or capsules) - while the 1993 patent application did not. The solid form of imatinib mesylate in Gleevec is beta crystalline. As provided under the TRIPS agreement, Novartis applied for Exclusive Marketing Rights (EMR) for Gleevec from the Indian Patent Office and the EMR was granted in November 2003. Novartis made use of the EMR to obtain orders against some generic manufacturers who had already launched Gleevec in India. Novartis set the price of Gleevec at US$2666 per patient per month; generic companies were selling their versions at US$177 to 266 per patient per month. Novartis also initiated a program to assist patients who could not afford its version of the drug, concurrent with its product launch.R. Jai Krishna and Jeanne Whalen for ''The Wall Street Journal''. 1 April 201
Novartis Loses Glivec Patent Battle in India
When examination of Novartis' patent application began in 2005, it came under immediate attack from oppositions initiated by generic companies that were already selling Gleevec in India and by advocacy groups. The application was rejected by the patent office and by an appeal board. The key basis for the rejection was the part of Indian patent law that was created by amendment in 2005, describing the patentability of new uses for known drugs and modifications of known drugs. That section, Paragraph 3d, specified that such inventions are patentable only if "they differ significantly in properties with regard to efficacy."Shamnad Basheer for Spicy IP 11 March 200
First Mailbox Opposition (Gleevec) Decided in India
At one point, Novartis went to court to try to invalidate Paragraph 3d; it argued that the provision was unconstitutionally vague and that it violated TRIPS. Novartis lost that case and did not appeal. Novartis did appeal the rejection by the patent office to India's Supreme Court, which took the case. The Supreme Court case hinged on the interpretation of Paragraph 3d. The Supreme Court decided that the substance that Novartis sought to patent was indeed a modification of a known drug (the raw form of imatinib, which was publicly disclosed in the 1993 patent application and in scientific articles), that Novartis did not present evidence of a difference in therapeutic efficacy between the final form of Gleevec and the raw form of imatinib, and that therefore the patent application was properly rejected by the patent office and lower courts. Although the court ruled narrowly, and took care to note that the subject application was filed during a time of transition in Indian patent law, the decision generated widespread global news coverage and reignited debates on balancing public good with monopolistic pricing, innovation with affordability etc. Had Novartis won and had its patent issued, it could not have prevented generics companies in India from selling generic Gleevec, but it could have obliged them to pay a reasonable royalty under a grandfather clause included in India's patent law. In reaction to the decision, Ranjit Shahani, vice-chairman and managing director of Novartis India Ltd was quoted as saying "This ruling is a setback for patients that will hinder medical progress for diseases without effective treatment options." He also said that companies like Novartis would invest less money in research in India as a result of the ruling. Novartis also emphasised that it continues to be committed to good access to its drugs; according to Novartis, by 2013, "95% of patients in India—roughly 16,000 people—receive Glivec free of charge... and it has provided more than $1.7 billion worth of Glivec to Indian patients in its support program since it was started...."


Sexual discrimination

On 17 May 2010, a jury in the United States District Court for the Southern District of New York awarded $3,367,250 in
compensatory damages At common law, damages are a remedy in the form of a monetary award to be paid to a claimant as compensation for loss or injury. To warrant the award, the claimant must show that a breach of duty has caused foreseeable loss. To be recognised at ...
against Novartis, finding that the company had committed
sexual discrimination Sexism is prejudice or discrimination based on one's sex or gender. Sexism can affect anyone, but it primarily affects women and girls.There is a clear and broad consensus among academic scholars in multiple fields that sexism refers primari ...
against twelve female
sales representative Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. The seller, or the provider of the goods or services, completes a sale in r ...
s and entry-level
managers Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities o ...
since 2002, in matters of pay, promotion, and treatment after learning that the employees were pregnant. Two months later the company settled with the remaining plaintiffs for $152.5 million plus attorney fees.


Marketing violations

In September 2008, the US
Food and Drug Administration The United States Food and Drug Administration (FDA or US FDA) is a List of United States federal agencies, federal agency of the United States Department of Health and Human Services, Department of Health and Human Services. The FDA is respon ...
(FDA) sent a notice to Novartis Pharmaceuticals regarding its advertising of Focalin XR, an ADHD drug, in which the company overstated its efficacy while marketing to the public and medical professionals. In 2005, federal prosecutors opened an investigation into Novartis' marketing of several drugs: Trileptal, an antiseizure drug; three drugs for heart conditions -
Diovan Valsartan, sold under the brand name Diovan among others, is a medication used to treat high blood pressure, heart failure, and diabetic kidney disease. It belongs to a class of medications referred to as angiotensin II receptor blockers (ARBs ...
(the company's top-selling product), Exforge, and Tekturna;
Sandostatin Octreotide, sold under the brand name Sandostatin among others, is an octapeptide that mimics natural somatostatin pharmacologically, though it is a more potent inhibitor of growth hormone, glucagon, and insulin than the natural hormone. It w ...
, a drug to treat a growth hormone disorder; and
Zelnorm Tegaserod is a 5-HT4 agonist manufactured by Novartis and sold under the names Zelnorm and Zelmac for the management of irritable bowel syndrome and constipation. Approved by the FDA in 2002, it was subsequently removed from the market in 2007 du ...
, a drug for irritable bowel syndrome. In September 2010, Novartis agreed to pay US$422.5 million in criminal and civil claims and to enter into a
corporate integrity agreement A corporate integrity agreement (CIA) is a document outlining the obligations that a company involved in health care in the United States makes with a federal government agency or a state government as part of a civil settlement. On the federal lev ...
with the US Office of the Inspector General. According to ''The New York Times'', "Federal prosecutors accused Novartis of paying illegal kickbacks to health care professionals through speaker programs, advisory boards, entertainment, travel and meals. But aside from pleading guilty to one misdemeanor charge of mislabeling in an agreement that Novartis announced in February, the company denied wrongdoing." In the same New York Times article, Frank Lichtenberg, a Columbia professor who receives pharmaceutical financing for research on innovation in the industry, said off-label prescribing was encouraged by the American Medical Association and paid for by insurers, but
off-label marketing Off-label use is the use of pharmaceutical drugs for an unapproved indication or in an unapproved age group, dosage, or route of administration. Both prescription drugs and over-the-counter drugs (OTCs) can be used in off-label ways, although ...
was clearly illegal. "So it's not surprising that they would settle because they don't have a legal leg to stand on." In April 2013, federal prosecutors filed two lawsuits against Novartis under the
False Claims Act The False Claims Act (FCA), also called the "Lincoln Law", is an American federal law that imposes liability on persons and companies (typically federal contractors) who defraud governmental programs. It is the federal government's primary litigat ...
for off-label marketing and kickbacks; in both suits, prosecutors are seeking
treble damages In United States law, treble damages is a term that indicates that a statute permits a court to triple the amount of the actual/compensatory damages to be awarded to a prevailing plaintiff. Treble damages are a multiple of, and not an addition t ...
. The first suit "accused Novartis of inducing pharmacies to switch thousands of kidney transplant patients to its immunosuppressant drug Myfortic in exchange for kickbacks disguised as rebates and discounts". In the second, the Justice Department joined a ''
qui tam In common law, a writ of ''qui tam'' is a writ through which private individuals who assist a prosecution can receive for themselves all or part of the damages or financial penalties recovered by the government as a result of the prosecution. Its ...
'', or whistleblower, lawsuit brought by a former sales rep over off-label marketing of three drugs:
Lotrel Amlodipine/benazepril, sold under the brand name Lotrel among others, is a medication used to treat high blood pressure. It is a combination of amlodipine, a calcium channel blocker and benazepril, an angiotensin converting enzyme inhibitor. It ...
and Valturna (both hypertension drugs), and the diabetes drug,
Starlix Nateglinide ( INN, trade name Starlix) is a drug for the treatment of type 2 diabetes. Nateglinide was developed by Ajinomoto, a Japanese company and sold by the Swiss pharmaceutical company Novartis. Nateglinide belongs to the meglitinide class ...
. Twenty-seven states, the District of Columbia and Chicago and New York also joined.


Avastin

Outside the US, Novartis markets the drug
ranibizumab Ranibizumab, sold under the brand name Lucentis among others, is a monoclonal antibody fragment ( Fab) created from the same parent mouse antibody as bevacizumab. It is an anti-angiogenic that is approved to treat the "wet" type of age-related ...
(trade name Lucentis), which is a
monoclonal antibody A monoclonal antibody (mAb, more rarely called moAb) is an antibody produced from a cell Lineage made by cloning a unique white blood cell. All subsequent antibodies derived this way trace back to a unique parent cell. Monoclonal antibodies ...
fragment derived from the same parent mouse antibody as bevacizumab (Avastin). Both Avastin and Lucentis were created by Genentech which is owned by Roche; Roche markets Avastin worldwide, and also markets Lucentis in the US. Lucentis has been approved worldwide as a treatment for wet
macular degeneration Macular degeneration, also known as age-related macular degeneration (AMD or ARMD), is a medical condition which may result in blurred or no vision in the center of the visual field. Early on there are often no symptoms. Over time, however, som ...
and other retinal disorders; Avastin is used to treat certain cancers. Because the price of Lucentis is much higher than Avastin, many ophthalmologists began having
compounding pharmacies In the field of pharmacy, compounding (performed in compounding pharmacies) is preparation of a custom formulation of a medication to fit a unique need of a patient that cannot be met with commercially available products. This may be done for me ...
formulate Avastin for administration to the eye and began treating their patients with Avastin. In 2011, four trusts of the
National Health Service The National Health Service (NHS) is the umbrella term for the publicly funded healthcare systems of the United Kingdom (UK). Since 1948, they have been funded out of general taxation. There are three systems which are referred to using the " ...
in the UK issued policies approving use and payment for administering Avastin for macular degeneration, in order to save money, even though Avastin had not been approved for that indication. In April 2012, after failing to persuade the trusts that it was uncertain whether Avastin was as safe and effective as Lucentis, and in order to retain the market for Lucentis, Novartis announced it would sue the trusts. However, in July Novartis offered significant discounts (kept confidential) to the trusts, and the trusts agreed to change their policy, and in November, Novartis dropped the litigation.


Valsartan

In the summer of 2013, two Japanese universities retracted several publications of clinical trials that purported to show that
Valsartan Valsartan, sold under the brand name Diovan among others, is a medication used to treat high blood pressure, heart failure, and diabetic kidney disease. It belongs to a class of medications referred to as angiotensin II receptor blockers (ARB ...
(branded as Diovan) had cardiovascular benefits, when it was found that statistical analysis had been manipulated, and that a Novartis employee had participated in the statistical analysis but had not disclosed his relationship with Novartis but only his affiliation with Osaka City University, where he was a lecturer.Kana Inagaki for ''The Wall Street Journal''. 11 August 201
Novartis Hit by Scandal Over Japanese Drug Studies: Probes Uncover Altered Research Data; Swiss Giant Stands by Heart Medicine Diovan
As a result, several Japanese hospitals stopped using the drug, and media outlets ran reports on the scandal in Japan. In January 2014 Japan's Health Ministry filed a criminal complaint with the
Tokyo Tokyo (; ja, 東京, , ), officially the Tokyo Metropolis ( ja, 東京都, label=none, ), is the capital and List of cities in Japan, largest city of Japan. Formerly known as Edo, its metropolitan area () is the most populous in the world, ...
public prosecutor's office against Novartis and an unspecified number of employees, for allegedly misleading consumers through advertisements that used the research to support the benefits of Diovan. On 1 July 2014 the prosecutor's office announced it was formally charging the company and one of its employees.


Corruption

In January 2018, Novartis began being investigated by US and Greek authorities for allegedly bribing Greek public officials in the 2006-2015 period, in a scheme which included two former prime ministers, several former health ministers, many high ranking party members of the Nea Dimokratia and
PASOK The Panhellenic Socialist Movement ( el, Πανελλήνιο Σοσιαλιστικό Κίνημα, Panellínio Sosialistikó Kínima, ), known mostly by its acronym PASOK, (; , ) is a social-democratic political party in Greece. Until 2012, it ...
ruling parties, as well as bankers. The manager of Novartis' Greek branch was prohibited from leaving the country. The minister's deputy described the allegations as "the biggest scandal since the creation of the Greek state", which caused "annual state expenditure on medicine to explode". Most of the ministers involved in the scandal have denied the allegations and sought to paint the case as "political targeting" and "fabrication" by the Syriza opposition party. However, the Greek Judicial Council ruled that the scandal was real. Besides bribery that involves artificial increases in the price of several medicines, the case also involves money laundering, with suspicions of "illegal funds of more than four billion euros ($4.2 billion)" were involved. In June 2020, Novartis reached settlements with the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) resolving all Foreign Corrupt Practices Act (FCPA) investigations into historical conduct by the company and its subsidiaries. As part of the resolutions, Novartis and some of its current and former subsidiaries would pay US$233.9 million to the DOJ and US$112.8 million to the SEC.


Michael Cohen

Novartis paid $1.2 million to Essential Consultants, an entity owned by Michael Cohen, following the 2017 inauguration of Donald Trump. Cohen was paid monthly, with each payment just under $100,000. Novartis claims it paid Cohen to help it understand and influence the new administration's approach to drug pricing and regulation. In July 2018, the US Senate committee report "White House Access for Sale" revealed that Novartis Ag's relationship with Cohen was "longer and more detailed". Novartis initially stated that the relationship ceased a month after entering the US$1.2 million contract with Cohen's consulting firm since the consultants were not able to provide the information the pharmaceutical company needed. Later, it became clear, however, that then-CEO
Joseph Jimenez Joseph Jimenez is the former CEO of the American Swiss pharmaceutical company Novartis. Education Jimenez earned a bachelor's degree from Stanford University in 1982, and an MBA from Berkeley's Haas School of Business in 1984. Career Earl ...
and Cohen communicated via email multiple times during 2017, which included ideas to lower drug prices to be discussed with the president. According to the report, several of the ideas appeared later in Trump's drug pricing plan, released in early 2018, in which pharmaceutical companies were protected from reduced revenues.


AveXis data integrity

Having already received approval for Zolgensma in May 2019, on June 28 AveXis (a Novartis company) voluntarily disclosed to the FDA that some data previously submitted to the agency as part of the Biologics License Application (BLA) package was inaccurate. Specifically, the data manipulation related to an ''in vivo'' murine potency assay used in the early development of the product but the issue the FDA and wider community has taken is that AveXis was aware of the data manipulation as early as 14 March 2019, almost two months before the BLA was approved. To compound the problem in early August it emerged a senior manager sold almost $1 million worth of stock immediately before the FDA probe became public on August 6, but after the company had informed the FDA of the problem. As of September 2019, the FDA was still preparing its response to the scandal.


Philanthropy


Fight against Leprosy

Novartis has been committed for decades to eliminate
Leprosy Leprosy, also known as Hansen's disease (HD), is a long-term infection by the bacteria ''Mycobacterium leprae'' or ''Mycobacterium lepromatosis''. Infection can lead to damage of the nerves, respiratory tract, skin, and eyes. This nerve damag ...
by providing free, multidrug therapy to all endemic countries since 2000.


See also

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List of pharmaceutical companies This listing is limited to those independent companies and subsidiaries notable enough to have their own articles in Wikipedia. Both going concerns and defunct firms are included, as well as firms that were part of the pharmaceutical industry ...
*
Pharmaceutical industry in Switzerland The pharmaceutical industry in Switzerland directly and indirectly employs about 135,000 people.Stephan Vaterlaus, Stephan Suter and Barbara Fischer"The Importance of the Pharmaceutical Industry for Switzerland" A study undertaken on behalf o ...


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Further reading

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External links

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