Novartis: Divestments, mergers, and acquisitions create a diverse healthcare company
Published: December 2012 · Publisher: MarketLine
In 1996 Ciba-Geigy merged with Sandoz to form Novartis. In 1997, 2000, 2006, and 2007 it divested its specialty chemicals, agribusiness, nutrition, and medical nutrition and baby foods businesses, respectively. Novartis has also made acquisi
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Introduction
In 1996 Ciba-Geigy merged with Sandoz to form Novartis. In 1997, 2000, 2006, and 2007 it divested its specialty chemicals, agribusiness, nutrition, and medical nutrition and baby foods businesses, respectively. Novartis has also made acquisitions to strengthen its position in the healthcare market, and now generates 100% of revenues from healthcare, and operates through five diverse segments.
Features and benefits
* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.
Highlights
The global population is growing older, and Novartis Pharmaceuticals provides products aimed at high- and middle-income countries, where a higher proportion of the population reaches old age. Novartis Pharmaceuticals' product lines reflect the most common causes of death in these countries.
While vaccines are estimated to save the lives of over 3 million people annually, the World Health Organization (WHO) estimates that over 3 million people die annually due to a lack of access to vaccines. The Vaccines and Diagnostics division has a product development portfolio of 15 potential products in various stages of clinical development.
The Consumer Health segment represents only 8% of sales. Despite this, the segment is important in providing stable growth to offset fluctuations in the less stable segments of Sandoz and Pharmaceuticals.
Your key questions answered
* How has Novartis changed to generate 100% of its revenues from healthcare sales, rather than the 45% that healthcare sales contributed in 1996?
* What mergers, acquisitions, and divestments has Novartis made, and how have these affected the company?
* Which areas of healthcare is Novartis present in?
In 1996 Ciba-Geigy merged with Sandoz to form Novartis. In 1997, 2000, 2006, and 2007 it divested its specialty chemicals, agribusiness, nutrition, and medical nutrition and baby foods businesses, respectively. Novartis has also made acquisitions to strengthen its position in the healthcare market, and now generates 100% of revenues from healthcare, and operates through five diverse segments.
Features and benefits
* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.
Highlights
The global population is growing older, and Novartis Pharmaceuticals provides products aimed at high- and middle-income countries, where a higher proportion of the population reaches old age. Novartis Pharmaceuticals' product lines reflect the most common causes of death in these countries.
While vaccines are estimated to save the lives of over 3 million people annually, the World Health Organization (WHO) estimates that over 3 million people die annually due to a lack of access to vaccines. The Vaccines and Diagnostics division has a product development portfolio of 15 potential products in various stages of clinical development.
The Consumer Health segment represents only 8% of sales. Despite this, the segment is important in providing stable growth to offset fluctuations in the less stable segments of Sandoz and Pharmaceuticals.
Your key questions answered
* How has Novartis changed to generate 100% of its revenues from healthcare sales, rather than the 45% that healthcare sales contributed in 1996?
* What mergers, acquisitions, and divestments has Novartis made, and how have these affected the company?
* Which areas of healthcare is Novartis present in?
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OVERVIEW
Catalyst
Summary
NOVARTIS’S ORIGINS TRACE BACK TO THREE COMPANIES
Company origins
Geigy was a dye producer
Ciba was a chemicals company
Sandoz was a pharmaceuticals, nutrition and agribusiness/chemicals company
Novartis was founded through a merger
Mergers, acquisitions, and divestments have made Novartis a leading healthcare company
Novartis spun off its chemical, agribusiness, and nutrition units
Novartis expanded its pharmaceuticals business with acquisitions
Novartis’s different segments address the different needs of a changing population
The common causes of death have changed significantly in the last 100 years
Novartis Pharmaceuticals largely addresses the healthcare needs of middle- and high-income countries
Novartis Vaccines and Diagnostics largely addresses the needs of low-income countries
The company is expanding geographically
Animal Health and OTC provide stable growth
CONCLUSION
Novartis’s diversity and investment in R&D will “improve the long-term growth prospects of the business”
APPENDIX
Definitions
Sources
Further Reading
Ask the analyst
About the publisher
Disclaimer
Catalyst
Summary
NOVARTIS’S ORIGINS TRACE BACK TO THREE COMPANIES
Company origins
Geigy was a dye producer
Ciba was a chemicals company
Sandoz was a pharmaceuticals, nutrition and agribusiness/chemicals company
Novartis was founded through a merger
Mergers, acquisitions, and divestments have made Novartis a leading healthcare company
Novartis spun off its chemical, agribusiness, and nutrition units
Novartis expanded its pharmaceuticals business with acquisitions
Novartis’s different segments address the different needs of a changing population
The common causes of death have changed significantly in the last 100 years
Novartis Pharmaceuticals largely addresses the healthcare needs of middle- and high-income countries
Novartis Vaccines and Diagnostics largely addresses the needs of low-income countries
The company is expanding geographically
Animal Health and OTC provide stable growth
CONCLUSION
Novartis’s diversity and investment in R&D will “improve the long-term growth prospects of the business”
APPENDIX
Definitions
Sources
Further Reading
Ask the analyst
About the publisher
Disclaimer
Copyright © FriedlNet. You may share using our tools Please don't cut content from FriedlNet and redistribute by email or post to the web.