1.Novartis have played a major role in the pharmaceuticals industry over the years. This

company had a great vision how to grab the market and make a change that can kicks-off a

journey in the medical history. The deep sequencing of human genome and how inexpensive that

has become created a wealth of data that will allow new areas of discovery that have never been

possible before.

With the advent of modern technology, Novartis has made some significant changes and develop

innovative new medicines in those areas. As people age, their muscle loss become very common,

and hearing loss. Technology allows to contribute in the development of new medicine and

overcome those problems people face.

Novartis CEO thinks that. bioinformatics capability is very important, as is the ability to mine

the data and really understand. In addition to, IT has become a crucial part of drug discovery. In

future, meld medical, technologies will be needed to create a medical advancement.One bright

spot for years to come is the biogeneric drugs sector, which will be one major source of revenue,

and a strong engine for future growth for Novartis.

However, the growth of health care spending cannot continue the current rate. So, novartis have

to think other way. Because solid financial footing is necessary if someone’s is willing to make

the wheel moving. Novartis only aim is to develop new and innovatinve medicines that can foucs

and change the practice of medicine in certain disease areas, so that those drugs will be

reimburesed.These drugs remain controversial, and present no approval clear pathway in the

USA yet, due to their recent introduction to the market and some other difficult issues. They are

developed at a lower cost for the drug company and will result in savings for the patient also.

Novartis has that way of pursing medical breakthrough, getting to blockbuster drugs, which is

quite different than the other companies. So , they started that approach a decade ago what they

called a pathway approach. That is used to understand the molecular pathway of particular

disease, usually in a rare disease that have a homegeneous patient population.

Novertis thought about this matter technically different from others. Homegeneous patient

population allows to study disease and molecular pathway that leads to that disease. Then they

developed a drug, which can interrupt that pathway and mechanistically expand their disease

area that are impacted by the same pathway. But it does not mean that blockbuster will go away,

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An example has been given by the CEO of Novartis Joe Jimenez, about their oncology drug

called Afinitor, which is a mTOR inhibitor. This Mtor is implicated in different types of disease.

So, they had the idea to develop Afinitor in renal cell cancer and then testing this Afinitor in

diffrent types of cancer. Breast cancer was another indication they had received approval for,

which helped around thousand of patient every year. Thus, from one to another ther have just

expanded it. That together made a blockbuster.

Like others, Novartis had a plan to invest in the research and development process (R&D). But

Novastis CEO had quite different plan than others. They focus on the place, people to build their

research center. To find out world best scientist and researcher they placed their center in the

developed countries. Novartis made the committment of spending 20% of their sales to R&D

sector. And they did it perfectly. Joe made it clear that, talent and knowledge of spending was his

1st part of success. Afterwards, he realized pathway approach would be best among those

approaches and how they are going to develop and discover drugs.

Considering demographic factors and and goverment spending behaviour made it easier for

Novartis to increase the size of the market and improve its condition. However, Chinese were

spending most of the medical expenses out of their pocket. But the innovative drugs compelled

them to spend more without any hesitation. Apart from this growth story Novartis started to think

about the less priviledge country where people do not get enough medication to survie. Even

though their economic growth is 6% to 7% per year. Lack of infrastructure made it harder for

them to establish business and provide service on the remote area. Still, Novartis can vision a

temendous growth opportunity in Africa.

Novartis committed to support ethical clinical research; new global guidelines emphasizing the

principles of ethics, governance and transparency

- Clinical research conducted by qualified independent investigators is an important part of drug

discovery and development and can help explore unmet medical needs

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Novartis CEO spent most of his career in consumer product. But working on a diffent kind of

industry was challenging and interesting too and advised others to to play to ones strength.

Though it was quite challenging for them to compete with the other established pharmaceutical.

They managed it properly to get along with different kinds of diffucult situations which led them

to success.

The Novartis case arguably sets an important precedent for the global pharmaceutical industry

andideally will help improve access to lifesaving medicines in the developing world by

demanding that patient healthneeds supersede commercial interests.

After doing all these hard work,Novartis saw the face of success. And that’s how Novartis

innovated the new market.

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2.Recommendation

Novartis has done a great job so far. They have created a successful company by delivering

quality drugs and services to customes. Medicine industry have seen a serious change in that

decade. Novartis has done a phenomenal job and brings changes to the medical industry. eing a

pharmaceutical company with advanced technology, Novartis has a lot of prospects to contribute

to the industry of pharmaceutical and biomedical sciences.

At the outset, Novartis converge part of its attention into research and early development of

treatments against neglected diseases. Novartis Institute for Tropical Diseases new research

centre was established and is solely dedicated for researches on dengue fever, malaria and drug-

resistant.

Apart of that, diabetes being the fourth leading cause of death globally, Novartis addressed the

issue by providing innovative therapies for diabetes’ treatment.

Holistically, this company became a factor in improvising the world’s health by developing in

these areas; pharmaceuticals, vaccines and diagnostics, Sandoz and consumer health.

As for Novartis which has an extensive involvement in research and development, innovation in

technology would affect the business and development to the highest degree.

Understanding this, Novartis has always been ensuring that the instrumentations as well as

pipelines of theirs are brought up to date from time to time with the maximum efficiency to

enhance the productivity of the company.

Novartis International AG has a well-defined framework in all the different aspects which is

consent to a pharmaceutical company. With clear and distinct mission and core competencies,

the management has empowered the associate’s take on investing ideas and work for the

company. It is also commendable that as of now, Novartis being a MNC has complement with all

the different countries’ legislations in manufacturing drugs and carrying out researches.

Nevertheless, there are some recommendations that Novartis could implement in order to shape

an even better pharmaceutical company with excellent progress in business and development. At

the outset, Novartis should review and restructure (if necessary) the proportion of focus that has

to be given to the different sectors in this company. As of now, Research and Development

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sector has been prioritized too much. In latter stages, there may be a possibility for Novartis to

encounter high rate of discontinuation in pre-approval products.

Apart of that, I also recommend Novartis to focus on resources management. One of the

implementation that they can uphold is to analyse their resources well and identify the rate of

resource wastage. As soon as they have recognized this factor, they would be able to

systematically distribute the resources for future researches.

In conclusive, I would like to quote that Novartis International AG has the potential to develop to

be the world’s largest pharmaceutical company if they have employed a better marketing

strategy and a comprehensive review system in all the aspect that would affect their business and

development.

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