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...
Read the full article – start your free trial today!
Join thousands of industry professionals who rely on In Vivo for daily insights
- Start your 7-day free trial
- Explore trusted news, analysis, and insights
- Access comprehensive global coverage
- Enjoy instant access – no credit card required
Already a subscriber?