30 Mar

Novartis Has Developed a Robust Innovation Strategy

WRITTEN BY Margaret Patrick

Multipronged strategy

To effectively capitalize on the growing demand for new drugs while controlling pricing risks, Novartis (NVS) plans to implement a multipronged strategy. The strategy involves rethinking all aspects of its value chain, from the way it develops new drugs to the way it sells these therapies to the way it operates across the world. Novartis calls this exercise “reimagining medicine.”

If the company successfully implements its strategy, its share price could see a boost, as could the price of the Vanguard FTSE All-World ex-US ETF (VEU). Novartis makes up ~0.75% of VEU’s total portfolio holdings.

Novartis Has Developed a Robust Innovation Strategy

Innovation strategy

To develop more effective and differentiated therapies, Novartis has been actively involved in developing multiple new technologies. In its second-generation Immunotherapy segment, the company is currently working on 11 clinical assets and two pre-clinical assets.

In 1H17, Novartis is expected to file an application with the FDA seeking approval for an investigational chimeric antigen receptor T cell (or CAR-T) therapy, CTL019, for pediatric patients suffering with relapsed or refractory B-cell acute lymphoblastic leukemia (or ALL).

In 2H17, the company is expected to file an application for CTL019 in relapsed or refractory diffuse large B-cell lymphoma (or DLBCL) indications.

Further, Novartis is also actively working on CRISPR-based (clustered regularly interspaced short palindromic repeats) targeted genome editing to develop a therapy for sickle cell disease.

These innovative research programs should enable Novartis to pose solid competition to other oncology players such as Pfizer (PFE), Merck & Co. (MRK), and Bristol-Myers Squibb (BMY) in future years.

In the next article, we’ll discuss Novartis’s growth strategy in greater detail.

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