Novartis AG: Science-Based Business Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Novartis is a science-based pharmaceutical company, which has important implications for its business strategy. This is one of the largest pharmaceutical companies in the world with over $ 38B in sales in 2007. Pharmaceuticals account for just over $ 24B of that amount. In 2007, corporate R & D expenses amounted to $ 6.43B, or almost 17% of net sales. Novartis executive leaders believe in scientific progress, and that large-scale investment in science, therefore, lead to long-term returns in terms of profits and discoveries that benefit mankind. Business strategy Novartis »closely linked to its research strategy, which emphasizes extensive internal discovery and development capabilities, leading to organic growth along with obvious external alliances and co-operation in addition to its core features. Like its rivals, Novartis faces many challenges in terms of promotion of research from the bench to the bedside. Five years after the restructuring of the research organization is open, CEO Daniel Vasella pleased with his progress, including the development of many other projects in the pipeline and new molecular entities. However, the company faces a number of challenges, including generic drugs, patent infringements in developing countries, and pricing pressures from governments and health insurance in the United States. Given these concerns, Novartis must decide how much to spend on R & D in general, how to arrive at the right mix between organic growth and external collaboration and licensing, and how to measure success when it takes so many years to develop and run a successful drug . "Hide
by H. Kent Bowen, Courtney Purrington Source: Harvard Business School 22 pages. Publication Date: Mar 04, 2008. Prod. #: 608136-PDF-ENG