I. INTRODUCTION 1
II. COMPANY HISTORY 1
III. CHIEF EXECUTIVE OFFICER 2
IV. MAJOR PRODUCTS 3
V. MAJOR COMPETITORS 5
VI. SALES HISTORY 6
VII. MAJOR FACTORS AFFECTING INVESTMENT POTENTIAL 7
VIII. STOCK PRICE DATA AND INVESTMENT ANALYSIS 8
IX. CONCLUSIONS & RECOMMENDATIONS 10
EXECUTIVE SUMMARY
This company profile provides a preliminary investigation and analysis of Novartis International AG, a multinational pharmaceutical company based in Basel, Switzerland. Novartis is one of ten companies the Investment Board will consider for further in-depth research for a multimillion-dollar investment.
Novartis was created in 1996 from the merger of two Swiss-based chemical/life sciences giants; Ciba-Geigy and Sandoz Laboratories. Novartis is comprised of four business divisions: pharmaceuticals, vaccines and diagnostics, Sandoz Generics, and consumer health. Dr. Daniel Vasella is Chairman of Novartis since 1999, and is Chief Executive Officer of Novartis since the merger that created Novartis in 1996. The global pharmaceutical industry tops $600 billion in sales annually, where Novartis’ top three competitors are Johnson & Johnson, Merck, and Pfizer. Novartis’ sales over the past 5 years have steadily increased from $23.1 billion to $36.7 billion. Major factors affecting investment potential include heightened competition from generic drug makers, unprecedented pricing pressure from payers, hard-to-control inflation in research and development budgets, a new U.S. Medicare prescription drug benefit boosting sales, and an aging population.
Novartis has a strong diversified approach to healthcare in its four business divisions. Its largest and most profitable division, pharmaceuticals, has a strong product portfolio while continuing to invest heavily in R&D to ensure a healthy drug development pipeline. Generics have become the fastest-growing sector of the pharmaceuticals industry, and Novartis is well positioned with
References: S&P Stock report (2007), Retrieved June 1, 2007, from http://proxy.ulib.csuohio.edu:2259/NASApp/NetAdvantage/sr/showStockReport.do S&P Industry Information (2007), Retrieved June 13, 2007 from http://proxy.ulib.csuohio.edu:2259/NASApp/NetAdvantage/cp/companyIndustryPage.do Hoovers historical financials (2007), Retrieved, June 13, 2007 from http://proxy.ulib.csuohio.edu:2105/subscribe/co/fin/history.xhtml?ID=ffffhtscrcxhjfsksj