Report on Novartis
Transcript of Report on Novartis
Final report
NOVARTIS
CH-4002 BASEL SWITZERLAND
41613241111
41613248001
1 2 / 2 0 / 2 0 1 2
ANUM ZAHRA 134
SUBMITTED TO
SIR ABDUL KHALIQ
1
ABSTRACT
Medicine is incredibly important to us we need medicine
because that it helps to maintain or restore our health prevent of
disease, injury and other damage to our body or mind.
Medicine can cure illness, boost immunities, provide extra
nutrients and vitamins that the body can't produce or consume
on a daily diet and Novartis is one of the best pharmaceutical
company which have its business in 140 countries and this
report contains mission , vision ,offices detail , check list for
cooperate strategies , flow of productivity , detail of products ,
customer contact matrix , product matrix , culture of
organization , competitive advantage , training methods ,
success stories and swot analysis of the Novartis pharmaceutical
company .Novartis is the only pharmaceuticals producer that has
considerable competitive advantages in key industry success
factors such as R&D ,competent employees ,financial
strengths ,marketing & sales & organizational efficiency.
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TABLE OF CONTENTS
Introduction
Background of Novartis……………………………………………………..3
Purpose ……………………………………………………………………...4
Scope………………………………………………………………………...4
Method used…………………………………………………………………4
History……………………………………………………………………….5
Mission & vision…………………………………………………………….6
Offices of Novartis in Pakistan……………………………………………6-7
List of competitors…………………………………………………………...8
Body
Fishbone diagram ……………………………………………………………9
Histrogram………………………………………………………………10-11
Checklist for the cooperate strategies………………………………………12
Products……………………………………………………………………..13
Products in Pakistan………………………………………………………...14
Customer contact matrix…………………………………………………….15
Product matrix……………………………………………………………….16
Productivity flow chart………………………………………………………17
Culture of organization………………………………………………………18
Competitive advantages……………………………………………………...19
Training undergone ………………………………………………………….20
Success stories……………………………………………………………21-27
Failures/threats……………………………………………………………….28
Conclusion……………………………………………………………...29
Recommendations……………………………………………………..30
Bibliography……………………………………………………………31
Glossary……………………………………………………………..31-32
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Introduction of Novartis
Novartis have diversified portfolios ALCON (EYE CARE) ,SANDOZ(GENERICS)
, SELF CARE PRODUCTS , VACCINES & DIANOSTICS AND ANIMAL
HEALTH CARE is a world leader in the research, development, production and
marketing of self-care products. Products are designed for in-home treatment of
medical conditions and ailments to help improve people’s ability to live the healthy
lives they want for themselves and their families. NOVARTIS have a robust portfolio
of cough, cold, respiratory disease treatments, digestive health solutions and pain
management medication as well as skin care products, smoking-cessation therapies
and mineral supplements.
BACK GROUND
Novartis International AG is a Swiss multinational pharmaceutical company based
in Basel, Switzerland, ranking number two in sales (46.806 billion US$) among the
world-wide industry in 2010 and employs 96717 people.
It is engaged in the research development, manufacture ,marketing of branded drugs
generic pharmaceutical products ,preventive vaccines, Diagnostic tools & consumer
health products. The company operates in more than 140 countries across the globe.
Novartis manufactures such drugs as clozapine (Clozaril), diclofenac
(Voltaren),carbamazepine (Tegretol), valsartan (Diovan), imatinibmesylate and
(Gleevec / Glivec). Additional agents include cyclosporin (Neoral / Sandimmun),
letrozole (Femara), methylphenidate (Ritalin), terbinafine (Lamisil), and others.
Novartis is a full member of the European Federation of Pharmaceutical Industries
and Associations (EFPIA) and of the International Federation of Pharmaceutical
Manufacturers and Associations (IFPMA).
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PURPOSE
The purpose of report is to get information about Novartis
pharmaceutical company which is working in 140 countries.
The report covers the company’s structure, operation, SWOT analysis, product and
service offerings, sales, and corporate stretegies, providing a 360° view of the
company
Scope
This report contains following information
Provides detailed information on Novartis AG required for business and
competitor intelligence needs
Contains a study of the major internal and external factors affecting Novartis
AG in the form of a SWOT analysis
Offers an in-depth view of the business model of Novartis AG including a
breakdown and examination of key business segments
Contains five-year financial information and charts of Novartis AG.
Provides intelligence on Novartis AG’s mergers and acquisitions , strategic
partnerships and alliances.
Captures the latest news about Novartis AG, such as business expansion,
restructuring, and contract wins Highlights:
This report includes Novartis AG's business description, segment overview,
company history, products and services, SWOT analysis, 5-year sales and
management , key executives and biographies, key
METHOD USED
Background research
Like an information scan, background research can involve a number of things:
- Online research; - Speaking to experts who give an overview of topic;
- Reading various literature
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History
Novartis pharmaceutical is established in 1996.The history of Novartis traces back to
three companies
Geigy Pharmaceutical
Ciba pharmaceutical
Sandoz pharmaceutical
Giegy whose origin goes back to the middle of the 18thcentury.
CIBA founded around1859and Sandoz established in 1886In1970 CIBA and Giegy
merged .the newly created CIBA-Geigy ltd and Sandoz continued to follow separate
path for two and half decades In1996 Sandoz and CIBA- Geigy joined to form
Novartis pharmaceutical.
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NOVARTIS PHARMA PAKISTAN
Head Office
Novartis International AG
CH-4002 Basel Switzerland Tel: +41 61 324 11 11Fax: +41 61 324 80 01
Head office in Pakistan
Novartis Pharma (Pakistan) LTD.
15 West Wharf Road, Karachi 74000, Sindh, Pakistan
Phone:
9221-2313389 / 2316286 / 2313387 / 2313390
Fax:
9221-2310241
Mission:
We want to discover, develop and successfully market innovative products to prevent
and cure diseases, to ease suffering and to enhance the quality of life. We also want to
provide a shareholder return that reflects outstanding performance and to adequately
reward those who invest ideas and work in our company.
Vision:
We want to discover, develop and successfully market innovative products to prevent
and cure diseases, to ease suffering and to enhance the quality of life. We also want to
provide a shareholder return that reflects outstanding performance and to adequate
those who invest ideas and work in our company.
Sector Head
Farhan Baider Malik
15 West Wharf Road, Karachi 74000, Sindh, Pakistan
Phone:
9221-2313389 / 2316286 / 2313387 / 2313390
Fax: 9221-2310241
Managers Khalid Ashraf (National Sales Manager)
Moiz Haider(Brand Manager)
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Zubair Ahmed(Training Manager)
Ali Imran (Human Resource Manager)
Moin Khan (Factory head)
Regional Sales Managers
Tuyyab Nazir Lahore
Mujeeb Alam Multan
M Shakeel Karachi
Arshad Iqbal
Islamabad
Zonal Sales Managers
Lahore
Muhammad Zeeshan Altaf M. Sohail Aslam
Faisalabad
M. Ejaz Qamer Shahzad Ali
Islamabad
Naveed Basheer Ikram Ulah Khan M.Usman
Multan
Shahzad Jamil Ghazanfar Aziz Ghauri Qamar Zaman
Gujranwala
AbaidurRehman
Sukhar
Imtiaz Soomro Abdul Hameed
Karachi
Faizan Ur Rehman Syed Ather Hussain Asif Ali Khan
Hyderabad
Jawaid Jabbar
Syed Shoaib Hussain
Naveed Farooque
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LIST OF COMPETITORS
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FISH BONE DIAGRAM REGARDING ISSUES OF PRODUCTIVITY
DIVERSIFICATION
INOVATION
PRODUCTIVE EFFICIENCY
Work force
Quality
Technology R&d prog
Pipeline industry
Bonuses & benefits
Continuous training
Proved by FDA
Pipeline industry
Harmless drugs
R&D prog
Diagnostic tools & capital
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GRAPH OF PRODUCTIVITY
1 2 3 4 5 6 7
7568600 7266120 7459640 7735281
69100007248552 7148352
2006 2007 2008 2009 2010 2011 2012
SALES YEARS
SALES YEARS
7567800 2006
7266120 2007
7459640 2008
7735281 2009
6910000 2010
7248552 2011
7148352 2012
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UNITS PRODUCED CO DIVON YEARS2000 20071800 20081850 20091900 20102050 20112100 2012
1 2 3 4 5 61650
1700
1750
1800
1850
1900
1950
2000
2050
2100
2150
UNITS PRODUCED CO DIVONYEARS
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CHECK LIST OF CORPORATE STRATEGIE
R &D PROGRAM IN INDUSTRY
DIVERSIFIED HEALTH CARE PORTFOLIO
GROUP WIDE PRODUCTIVITY INITIATIVES
BROADER PORTFOLIOS TO MEED DEMAND
FOCUSED SOLELY ON HEALTHCARE
INNOVATION
GREATER EMPHASIZE ON PRODUCTIVITY
STRONG CASH FLOW RETURNS
REINVESTMENT FOR FUTURE GROWTH
SHARE HOLDER RETURNS
REINVEST INTO INNOVATIVE PRODUCTS
GAIN GREATER OPERATING LEVERAGE
CONTINUED INVESTMENT IN R&D
improve efficiency in manufacturing, sales, marketing and procurement
Giving bonuses to employees on annual basis
Every step is taken according to the planning
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Pharmaceuticals Products OF NOVARTIS
Name Indication(s) or drug type/classAfinitor Organ transplants and cancers
Comtan Parkinson's disease
Diovan Hypertension
Exjade Ironchelator
Femara Breast cancer
Focalin AD/HD
Galvus Anti-diabetic medication
Gleevec Chronic myelogenous leukemia
Lescol hypercholesterolemia
Lotrel Hypertension
Lucentis Age-related macular degeneration
Ritalin AD/HD
Exelon Alzheimer's disease
Sandimmune and Neoral Organ transplantation
Sandostatin Acromegaly
TasignaChronic myelogenous leukemia (CML); first line
treatment of CML[29]
Tegretol Epilepsy
Termalgin - (Paracetamol and
compounds.)Treatment of fever and light pain.
Tobramycin Cystic fibrosis
Trileptal Epilepsy
Voltaren anti-inflammatory
Zometa Cancer complications
Tofranil antidepressant
PRODUCTS AVAILABLE IN PAKISTAN
➢TAB MEPRESSOR 100 MG
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➢TAB MAPRESSOR 200 MG
➢TAB VOLTRAL 50 MG
➢TAB VOLTRAL 100 MG
➢TAB TEGRAL 200 MG
➢TAB TERNALINE 2 MG ,4 MG
➢TAB ANNUVA 50 ,100 MG
➢TAB HYDERGINE 4.5 MG ,1.5 MG
➢HYDERGINE SYRUP
➢CAC 1000
➢ INJ SANTOCINON
➢INJ METHERGIN
➢DIOVAN 160 MG , 320 MG
➢CO DIOVAN 160/25 MG
➢GALVUS 50 MG
➢GALVUS MET 50/500MG
➢GALVUS MET 50/1000MG
Customer contact matrix
less customer contact & customization
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There is less process divergence & more line flows vertically
PRODUCT MATRIX
less customization & higher volume
less divergence & more line flow vertically
PROCESS CHARACTERISTICS
High interact Some interact Low interact
Flexible flowFront officee.g medical stores
Flexible flowMedium flexibility
Hybrid officee.g distributers
Lowest complexibility Back officee.g company
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Process characteristics
Low volume products
Multiple products with low to oderate level
Few major products
High volume high standardization
Customized process with flexible and unique task
Job processe.g DIVONFor Heart failures
Disconnected line flows moderately repetitive work
Batch process1.smalle.g ANNOVA2.largee.g MEPRESSERGeneral blood pressure
Connected line highly repetitive work
Line processe.g ELGINmultivitaminvitamin B 12
Continuous flow Continuous flow processe.g VOLTRALpain killer
PRODUCTIVITY FLOW CHART
CO-DIVON
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no
yes
Culture of the organization
Culture and values
At Novartis, our performance-oriented culture and responsible approach are
the foundations of our success. We recognize that our business depends on the
PROPER MIXING OF valsartan & hydrochlorothiazide
Stop the production
Analyse the problem
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creativity,
dedication
performance of our associates. We encourage associates to focus on
achievement through
collaboration and innovation.
A pipeline of innovative medicines brought to life by
diverse
talented
performance driven people. All of which makes us one of the most rewarding
employers in our field.
Diversity and inclusion
Novartis is committed to equality of
opportunity
fairness
work
lifestyle
mutual respect
dignity at work for all associates.
Novartis values differences including disability, sexual orientation, race,
ethnicity, age, thinking styles, gender and religion.
Inclusion establishes and reinforces behavioural standards that foster a collaborative
culture and work environment, which will enable individuals and groups to contribute
to their fullest potential. Diversity and Inclusion adds value for our company,
patients customers associates shareholders suppliers & the communities in which we
live and work
COMPETITIVE ADVANTAGES IN PAKISTAN & INTERNATIONALY
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Strengths
STRENGTHS
Market leader
Strong cns image of Novartis
Strong brand image heritage valuation
High acceptance of carbamazepine a anti epileptic
FDA approved
Effective in multiple indications
First line , first choice therapy
More COMPETITIVE ADVANTAGES
VACCINES BUSINESS SHOWCASING
LEADING PIPELINE INDUSTRY
INNOVATIVE MEDICINES
17 VACCINES CANDIDATES IN VARIOUS PHASES OF CLINICAL
DEVELOPMENT
COST-SAVING GENERIC PHARMACEUTICALS
PREVENTIVE VACCINES
DIAGNOSTIC TOOLS
CONSUMER HEALTH CARE PRODUCTS
LOW COST QUALITY MEDICINES
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FAST GROWING SEGMENTS OF HEALTHCARE.
CORE COMPETENCIES IN SCIENTIFIC DISCOVERY AND
DEVELOPMENT TO CONTINUE DRIVING.
INNOVATION.
GROWTH
TRAINING UNDERGONE
Learning at Novartis
“If we can transform ordinary people into extraordinary people to achieve
extraordinary things, then we really have fulfilled the leadership challenge.”
Dr. Daniel Vasella, Chairman of Novartis
Our executive programs are developed in close cooperation with the world’s leading
business minds – professors and learning consultants from world-class institutions
such as Harvard Business School, Stanford, IMD, Tuck, Babson and others.
Proven learning methods encourage participants to discuss their own real business
issues, exchange ideas and solve problems. Custom-designed corporate programs
bring together executives from all over the world to build the necessary skills,
informal networks, insight and teamwork essential for success.
The programs take place in a learning environment that stimulates collaboration and
sharing of ideas and builds strong personal and professional bonds among Novartis
leaders.
Novartis Pharmaceuticals conducted seminars to educate staff about their benefits
packages
Success stories
Rankings and awards
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Novartis is honored to receive numerous awards for progress in research and
development, our working environment, and our corporate responsibility activities.
SCRIP awards 2012
Novartis awarded two of the prestigious SCRIP Awards for excellence in innovation
and R&D
Newsweek 2012 Green Rankings
Novartis is the greenest healthcare company worldwide
2012/13 Dow Jones Sustainability World Index
Novartis is a member of the 2012/13 Dow Jones Sustainability World Index, which
recognizes the leading sustainability-driven companies worldwide.
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MedAdNews
Novartis named “Most Admired Pharmaceutical Company 2012” for the 4th
consecutive year.
Science’s 2012 Top Employer
Novartis ranked no. 11 on Science’s Top 20 Employers list.
Eurobrand’s Global Top 100 Brand Corporations
Novartis brand ranks no. 39 globally and no. 2 in Switzerland.
2012 Working Mother’s 100 Best Companies
Novartis Pharma US named one of the best employers for working mothers.
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Universum’s World’s Most Attractive Employers
Novartis named one of the top 50 most attractive employers worldwide for
engineering students by Universum.
Swiss Graduate Barometer 2012 – Handelszeitung
Novartis ranked most popular employer in healthcare by Swiss students in Swiss
Graduate Barometer.
European Graduate Barometer 2012 – Frankfurter AllgemeineZeitung
Novartis enters the list of the 50 preferred employers among European Engineering/IT
students.
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Transparency in corporate reporting: Assessing the world’s largest
companies
Novartis named the most transparent large healthcare company by Transparency
International
2012 Ethical Corporation Awards
Novartis wins Ethical Corporation Award for Best Corporate/NGO Partnership for
SMS for Life
World’s Most Respected Companies 2012 by Barron’s
Novartis ranks again as the most respected healthcare company in “The World’s Most
Respected Companies” by US business magazine Barron’s
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Top Employer in Switzerland 2012 by Universum /Bilanz
Novartis again ranked No. 1 employer in Switzerland for students in Natural Science
by Swiss business magazine Bilanz and Universum
Computerworld’s 21st Century Achievement Awards
SMS for Life has been honored with the 21st Century Achievement Award in the
Innovation IT category of the 2012 Computerworld Honors Program. This award
recognizes organizations that promote and advance the public welfare, benefit society
and change the world for the better through a visionary application of IT.
Bilanz magazine Sustainability Ranking 2012
Novartis again ranked as a top sustainability performer
The Scientist’s Best Places to Work: Industry 2012
Novartis again among top 20 companies globally climbing one spot to No. 17.
Pharmaceutical Executive “PharmExec 50”
For the second time, Novartis is No. 2 in PharmExec's 2012 ranking of the top 50
pharma companies based on Rx sales.
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FT Bowen Craggs Index 2012
Bowen Craggs ranks Novartis No.8 in its 6th annual index of corporate web
effectiveness, making it the second healthcare company on the list.
Interbrand’s “Most Valuable Swiss Brands 2012”
Novartis named #3 Most Valuable Swiss Brand 2012 by Interbrand/Bilanz with a brand value of CHF 6.8 billion.
Brand-Finance’s Top 500 most valuable global brand 2012
Novartis ranked as one of the "Global 500 most valuable brands" and one of the top
brands in the pharmaceutical/healthcare sector.
Novartis CEO Joseph Jimenez receives “CEO in Action” award
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Novartis CEO Joseph Jimenez receives "CEO in Action" award for commitment and
engagement in Novartis Diversity & Inclusion initiatives.
Fortune’s World’s Most Admired Companies 2012
Novartis again ranked top pharmaceutical company in Fortune's World's Most
Admired Companies 2012
SAM Sustainability Yearbook 2012
Novartis awarded Gold Class Medal in SAM's 2012 Sustainability Yearbook.
ONE MORE STORY ….
ALCON EYE CARE
Transforming lives through better vision
Since its inception, Alcon has focused on developing innovative eye treatments. Alcon offers a broad range of products to treat many eye diseases and conditions and is organized into three business franchises: Surgical, Ophthalmic Pharmaceuticals and Vision Care
28
FAILURE / THREATS IN PAKISTAN AND INTERNATIONALY
WEAKNESSES
&
THREATS
WEAKNESSES
Only one formulation is available No formulation for children Mostly under dosage is recommended Lack of resources to top attractive
opportunities
EXISTING THREATS
High share of voice of customers Increased penetration of low cost generics
in institutions Rapid growth of below the line & direct to
consumer advertising Increasingly high acceptance of valproates
THREATS
Patent expiry for diovan/co-diovan franchise In 2011/12 longer term risk of patent expiry for Gilvac ( in 2015)
Considerable risk of late stage pipeline attrition ,heightened by these products accounting for significant proportion of 2013 forecast sales
POTENTIAL THREATS
Intro of new molecules Compliance is low
ENTRY/EXIT INTO THE INDUSTRY
Increase in number of neuro science Competitive products Consumers have been offered more
choices
WEAKNESSES Failure of galvus to position NOVARTIS
in DIABATES market
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Conclusion
It is concluded from the report that,
The external business environment analysis revealed that Novartis benefits from a
growing global pharmaceuticals market. Growth is caused by new emerging
markets ,aging global population and more diseases caused by changing lifestyles. On
the other hand, governments put increasingly pressure on pharmaceutical companies
to lower prices and increase drug availability. In terms of sales and market share,
Novartis is currently one of the top five largest pharmaceuticals producers in the
world with a market share of about 5%.From the internal analysis it can be concluded
that Novartis has an attractive, diversified and rejuvenated product portfolio with
many recently launched new products that are still in the introduction and growth
phase, making Novartis less reliant on Diovan. It is noteworthy that Novartis is the
only major pharmaceuticals producer that also has the capability to market generic
drugs. This might become more important in the future as governments around the
world try to lower health care.This might become more important in the future as
governments around the world try to lower health care costs. The analysis also
showed that Novartis has considerable competitive advantage in key industry success
factors such as R&D, competent employees, financial strength, marketing and sales
and organizational efficiency. This is vital for Novartis to maintain its strategy of
developing new and effective drugs and while focusing on growth areas in the
pharmaceuticals industry , competent employees, financial strength, marketing and
sales and organizational efficiency
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RECOMMENDATIONS
TO OVERCOME THREATS
Formulation should be introduced for children & young adults
Promotional strategies to create awareness & increase mind share
Promote kols to the number of patients
Optimise the loyalty base of tegral users
Switch epival users to tegral
Low dosage range extension should be introduced
In the regions other than Karachi ,Lahore &Peshawar distribution should be made
more extensive to increase availability
More agents should be contacted
Management should strategies their aims to retain their sales force through
benefit planning & incentives.
To overcome weaknesses
Conduct seminars &workshops to train GPS global positioning system about
epilepsy &the usage of tegral
Treatment gap should be reduced by awareness programs in rural areas
Cost-plus pricing should be practice for new molecules exposure & regulations for
safety should be enhanced
Local firms desirous of export , buy lacking necessary export structure.
To achieve the opportunities
Capitalize on strong CNS frenchise
Patient evaluation programs
Keep (key experts evaluation programs pain full diabetic NEUROPATHIES for
30 physician
BOC 2 programs for 30 doctors each for PDN
Epilepsy project
CME (continuing medical education) programs for family physicians
Only 28 epilepsy camps are organised so far
31
Neuroscience summit : patent evaluation programs for major brands of
NEUROSCIENCE .
Total35 top kols (autoimmune diseases) from NEUROLOGY & PSYCHATRY.
BIBLIOGRAPHY
WWW.NOVARTIS.COM
YOUSIGMA-WEB’S MOST EXTENSIVE RESOURCE FOR
INFORMATION
DR.M.QASIM AWAN
PHARMA-D.R.PH
EX.HOSPITAL PHARMACIST SHAUKAT KHANUM
MEMORIAL CANCER HOSPITAL LAHORE.
Master Thesis
MSc in Finance & International Business
A Valuation of Novartis including a Real Option
Analysis Based on a Drug R&D Project
Academic Advisor: Peter Løchte Jørgensen (PhD)
Århus School of Business
September 2010
March 2011 pdf report by heif financial officer of Novartis
By JONATHAN SYMONDS
Report about Novartis published by MIRZA ABBASS
GLOSSARY
Generic drugs
A drug which is produced & distributed with out patent protection
Epival
Valproate semi sodium
CNS
Central nervous system
PDN
32
Potential indifferent indications
Neuropathies
Any pathology of the peripheral nerves
Pipeline industry
Discovery &new developments
Epilepsy
Disorder of nervous system
FDA
Food & drug administration
Ophthalmology
Is the branch of medicine that deals with the physiology &
diseases of the eye.
Immunities
The ability to resist a particular toxin by the action of specific
antibodies.