Add details, comment from CEO
ZURICH, September 22 (Reuters) – Novartis NOV.S on Thursday unveiled a new strategy based on eight major drug brands as the pharmaceutical maker reshapes itself following the decision to divest its underperforming Sandoz generics business.
Ahead of an event for investors, the Swiss company said the brands currently on the market – Cosentyx, Entresto, Zolgensma, Kisqali, Kesimpta, Leqvio, Pluvicto and Scemblix – each hold billions of dollars in peak sales potential.
Novartis also said it will focus on five investment areas going forward: cardiovascular, immunology, neuroscience, solid tumors and hematology medicine – and has “several significant assets in market and in pipeline in each of these areas. “.
“Our strategy is focused on five attractive therapeutic areas, key technology platforms and the US market, with the goal of increasing the value per new molecular entity of our deep pipeline,” Chief Executive Vas Narasimhan said Thursday.
The company announced last month that it planned to spin off from Sandoz to focus more on its patented prescription drugs.
The split is expected to be completed in the second half of 2023, Novartis said, with Sandoz listed on the SIX Swiss Exchange.
Novartis has also trimmed its other business interests, spinning off its Alcon eye care business in 2019 and agreed last November to sell a nearly one-third voting stake in Roche. ROG.S.
Narasimhan also confirmed Novartis’ previously announced financial targets on Thursday.
“We will continue to improve our financials with a CAGR of +4% in sales through 2027 and a core operating profit margin of around 40%+ in the medium to long term,” he said.
(Reporting by John Revill editing by Rachel More and Mark Potter)
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