Executive Summary

Novartis is a biotechnology healthcare company which is providing many solutions to the ever increasing needs of patients all over the globe. The company is situated in Basel Switzerland. The main focus of the company is to discover many new ways of improving and further extending peoples’ lives.

The company applies its expertise mainly in innovations and science to the challenges facing the health sector in the world today and this makes responsibility to be its core part in their business strategy.

The company although has had a good run and growth, it has had also its share of cases and liabilities. The cases that Novartis is involved in include:

-Doctor Kickbacks Allegations Lawsuit

This is a US government lawsuit accusing Novartis of paying kickbacks in millions of dollars to doctors so that they can prescribe their drugs.

This may cause Novartis to pay a lot of money as fines and other damages if found guilty. The case is ongoing and has not reached to settlement.

History of Novartis Pharmaceuticals

Novartis Company was a result of a merger of two companies, Ciba-Geigy and Sandoz which had very rich history of innovative. This merger then became Novartis and started producing chemicals and then eventually pharmaceuticals. These companies before the merger developed a great passion for developing and marketing new products, a trait that was fully exercised by Novartis pharmaceuticals.

This company throughout has developed this passion and has ensured the development, manufacture and distribution of new products that give human beings value and contributes to their progress through the advances made in science and health.

Subsidiaries of Novartis Pharmaceuticals

1. Alcon

In April 2008, Novartis Pharmaceuticals acquired Alcon, a company based in USA at a cost of $39 billion. Alcon Company mainly deals with eye problems. This acquisition ensured Novartis eye care problems were catered for and boosted its business so much.

Alcon Company is situated in Texas United States. It is a global leader in the care of the eye which is brilliantly dedicated to make sure people see carefully and clearly. It is the largest in the world in the side of device eye care with more emphasis on vision care and surgical. The company always puts patient care first and it was a big acquisition of Novartis businesswise.

1. Avexis

Novartis pharmaceuticals acquired Avexis, a gene therapy company at a cost of $8.7 billion in April 2018. Avexis is located in Bannockburn, Illinois, United States and deals with the therapy of the spinal muscular. 

Avexis deals with very rare diseases which create problems in man and also very life threatening. This are diseases which make human beings devastated so much and often requires some more attention which Avexis is doing.

The company’s initial product is AVXS-101 which a gene therapy product that has already gone through the first stage and on the trial and will be used specifically for treating Muscular Atrophy Type 1. 

1. Endocyte

In October 2018, Novartis pharmaceuticals acquired Endocyte which a US cancer treatment drugmaker at a cost of $2.1 billion in cash. This was a move for Novartis to expand more in the radiopharmaceuticals business

Endocyte is a biopharmaceutical company established in 1996 in the US which majorly develops receptor targeted therapeutics which is used to treat inflammatory diseases and cancer. It is located in Indiana United States.

The company provides solutions to the patients mostly in the treatment of renal and ovarian cancer and also various tumors which further include cancers of the blood, lungs and breast.

1. Ebewe Pharma

 In May 2009, Novartis Pharmaceuticals acquired Ebewe pharma at a cost of $1.2 billion in cash. The company was established in 1934 in Vienna Austria and its headquarters are at Unterach lake Attersee.

Ebewe pharma is a company that has specialized in very professional processing of effective substances into the sterile medicine injections. It focuses on the fields of specialized pharmaceuticals like oncology. This makes this company very popular and very efficient in this field. 

The company produces parenteral medicines, vials, ampoules and pre filled syringe. The company also engages in ensuring protection of people globally and according to the internationally accepted standards.

1. Hexal AG

Hexal AG is a company located in Germany and its headquarters are in Holzkirchen. In February 2005, Novartis acquired Hexal AG at a cost of $8.3 billion cash which is a generic company making Novartis to become the largest generic company in the world replacing Teva pharmaceuticals.

The company was established in 1986 and was called Hexal chemie and later changed its name in 1995 to Hexal AG.

Hexal AG mainly develops, manufactures and markets mostly generic drugs. This company offers prescription for over the counter medicines for diseases like Asthma, cancer, high blood pressure, common cold, pain therapy medicines.

1. EsbaTech AG

This company is located in Switzerland and was established in 1998. The company is based in Schlieren Switzerland.

In September 2009, Novartis acquired EsbaTech AG at accost of $589 million. It mainly focuses on the fully human antibody fragments majorly for therapeutic applications which it applies the single framework of the single chain antibody.

The company delivers very high concentrations of the antibody fragments to the targeted sites. The antibody fragment is derived from the human antibody fragment called scaffolds.

Popular Products of Novartis Pharmaceuticals

1. Diovan (Valsartan)

This is a Novartis pharmaceutical company product which is used to treat hypertension and to lower the blood pressure which reduces the many risks of fatal and non fatal cardiovascular situations and strokes which are in the primary level.

It also reduces the risk of getting heart failure which it has done insignificantly to minimize hospitalizations of heart failure patients.

Its dosage is available to adults and children from the age of 6 to 16 years. For the use of Diovan tablets, it is recommended that it should be used for adults and children who can swallow it full and for other children who cannot swallow the tablet, the suspension can do better.

1. Ofatumumab Arzerra

This is a product which is produced by Novartis pharmaceuticals which is used in the treatment of lymphocytic leukemia. It is a human antibody which induces the killing of tumor lines and primary tumor cells.

This drug was originally developed by Genmab but it is currently being developed by Novartis.

1. Ciprodex

Ciprodex is a product of Novartis pharmaceuticals which is used in the treatment of bacterial ear infections. It also used to treat in children middle ear infections with ear tubes and also the outer ear infections in both children and adults.

This medicine works by actually stopping the bacteria which mainly reduces the ear swelling and the ear discomfort.

1. Secukinumab Cosentyx

This is a prescription medicine which is used to treat adults who have moderate to severe plaque psoriasis which involves very large areas of the body. It is also used to treat patients with active arthritis and active ankylosing spondylitis.

This medicine when used may easily lower your immune system which fights infections hence increasing rapidly the risk of having many infections in the body. It should be used as prescribed by the doctor to avoid over or under dosing.

1. Emedine

Emedine is another product which is produced by Novartis pharmaceuticals. It is mainly used to relieve itching, redness, and swelling of the eyes from allergies. This works by blocking certain natural substances in the body or eyes that brings about or causes these allergies.

This medicine is prescribed in drops and should be applied through this eye drops. Always observe cleanliness to avoid contamination to the eye because of its sensitivity nature.

1. Femara (Letrozole)

This is also another product from Novartis pharmaceuticals which is mainly used to treat certain types of breast cancer in women who have attained the level of menopause. After treatment, the cancer may return back and it is also used to prevent this return back. Estrogen is a natural hormone in the human body which makes the breast cancer to grow very fast. Letrozole does this work of highly reducing the growth of this hormone estrogen in the body thus reducing also the growth of this breast cancer in the body.

It should be used purely according to the doctors’ prescription.

Product Recalls and Lawsuits

1. Valsartan Recall

In July 2013, the FDA and Novartis made a recall on valsartan products outside USA. This was because the products used to manufacture them did not come from the same place and hence it might different ingredients. This only affected the countries outside the US where this drug is sold.

1. Recall of Zofran and Entresto packages

Novartis made this recall in July 2018. This recall was not due to safety or any medical reason but due to the packaging reason of the tablets. The packaging was not child resistant hence posing danger to the children because it is easier for the children to swallow these products.

The products in bottles are not affected at all.

Litigation Settlements

1. Elidel Cream $35 million settlement

In October 2016, Novartis Company agreed to pay $35 million which was to settle a lawsuit which challenged the company for promoting illegally a prescription of a skin cream for toddlers and infants.

The company was accused of widening the market of Elidel cream and that it should be applied 80% to the body and it never put openly that it can cause cancer. Many people were overstretched and they paid more which also resulted in Medicaid. This led to many suits from the effected sales representatives and the patients as well. 

Novartis agreed to pay and this issue was settled.

Sources:

https://www.crunchbase.com/organization/novartis#section-overview

https://www.pharma.us.novartis.com/product-list

https://www.cnbc.com/2018/04/09/novartis-enters-deal-to-acquire-avexis-for-8-point-7-billion.html

https://www.crunchbase.com/organization/endocyte#section-overview

https://www.ft.com/content/323cd2d0-83d5-11d9-ad81-00000e2511c8

https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=983882

https://www.webmd.com/drugs/2/search?type=drugs&query=cosentyx

https://www.statnews.com/pharmalot/2016/10/05/novartis-35-million-improper-marketing/