Novartis Buys into New Pharma World Order

In paying $5.1 billion for vaccine maker Chiron, Novartis is pursuing a unique business strategy which recognizes the growing role of governments, both as purchasers and as price-setters. The same strategy assumes, too, that pharma must seek alternative growth sources to branded prescription drugs.

To understand Novartis AG 's $5.1 billion bid for Chiron Corp. requires more than merely calculating a financial return. In buying the vaccine maker, Novartis is pursuing a unique business strategy which recognizes the growing role of governments, both as purchasers and as price-setters. [See Deal] The same strategy assumes, too, that pharma must seek alternative growth sources to branded prescription drugs. Generics, OTC drugs and vaccines will start to look more appealing as industry dynamics shift.

Certainly, Novartis finds the vaccine market attractive. The recent flu scare, and President Bush's $7.1 billion plan to combat a...

More from Business Strategy

Late-Stage GLP-1 Drug Trials Outside The Cardiometabolic Space

 
• By 

A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By 

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.

AI In Drug Discovery: The Patent Implications

 
• By 

A Q&A with DeAnn Smith, partner and co-chair of the Patent Trial and Appeal Board Proceedings Practice Group at law firm Foley Hoag.

Is Advanced AI Revolutionizing Sales Enablement In Pharma?

 
• By 

Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.

More from In Vivo