Download - Presentation - Novartis

Transcript
Page 1: Presentation - Novartis

Dr. Stephan Mumenthaler Head Economic and Swiss Public Affairs Istanbul, November 22, 2012

Innovation through Corporate R&D

Page 2: Presentation - Novartis

Leading market position

One of 35 largest companies by market capitalization

Among most respected companies globally

Novartis is a world-leading healthcare company

2011 CHF billion

Net sales: 51.8

Net income: 8.2

R&D investment: 8.5

Key figures

Canada/ Latin America

US

Europe Asia/Africa/ Australasia

Sales by region – 2011

1 CHF = USD 1.13

2 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 3: Presentation - Novartis

We believe our portfolio best meets the varied and often complex needs of patients and societies Environment Patient needs Novartis portfolio

Pharmaceuticals

Vaccines and Diagnostics

Sandoz (Generics)

Full range of healthcare options

Innovative medicines Prevention Affordable options Self-care

Alcon

(Eye care)

Consumer Health (OTC and Animal Health)

3 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 4: Presentation - Novartis

Novartis

Pfizer/Wyeth

Merck/SGP

Roche/Genentech

BMS

AstraZeneca

J&J**

Sanofi-Aventis

Eli Lilly

Bayer

GSK

US FDA EU EMA Japan PMDA China SFDA

15

11

10

13

6

3

5

4

5 5

2

8

3

6

5

6

4

3

2

1

3

1

Notes: Does not include vaccines; Novartis includes Alcon and co-developed or co-marketed products from Ciba Vision, QLT, Idenix, Genentech; Pfizer includes products of Pharmacia + Wyeth; Merck includes products of Schering Plough + Organon; Roche includes products of Genentech and Chugai (JP); J&J includes products of Janssen +Centocor+ RWJohnson EU approvals for all companies are inclusive of fixed-dose combinations and confirmed EC decisions Source: FDA, EMA, PMDA, SFDA/CDE databases (as of 31 Jan 2012)

New chemical/molecular entity (NCE/NME) approvals for selected companies 2007 – 2011

By leveraging our R&D capabilities, we are leading the industry in productivity

4

6

3

1

3

3

4

8

3

2

13

3

1

1

3

2

8

10

9

10

12

17

4 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 5: Presentation - Novartis

Novartis Pharma and Corporate Research and Development 2012: worldwide community 2012

Emeryville (USA): NIBR

La Jolla (USA): GNF, Genomics Institute

East Hanover (USA): NIBR & Pharma Development

Alcon Forth Worth (USA): Ophtalmology

Cambridge (USA): NIBR, Pharma Development,

Vaccines Research

Horsham (UK): NIBR & Pharma

Development Basel (CH): NIBR, Pharma Development & Friedrich Miescher Institute for

Biomedical Research (FMI)

Siena (IT): Vaccines

NITD Singapore (SG): Tropical Diseases

Shanghai & Changshu (CN): NIBR & Pharma

Development

Hyderabad (IN): Pharma

Development

Tokyo (JP): Pharma

Development

5 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 6: Presentation - Novartis

The most important research center of Novartis is Switzerland

Novartis is continually investing in R&D in Switzerland • In 2011 the R&D investment amounted to 3.3 billion francs • The research programs are supported by cooperative ventures, for

example with the prestigious Paul Scherrer Institute

Basel is not only the global headquarters of Novartis, but also its largest research center • Around 13 550 associates

are employed in Switzerland, over 2 800 of them in research

• Basel’s Friedrich Miescher Institute is also part of the global research network of Novartis

6 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 7: Presentation - Novartis

Innovations require attractive framework conditions

• protection of intellectual property • attractive tax system • political und economical stability

enterprise-friendly framework conditions

• uncomplicated raise of capital • beneficial interest rates • promote risk capital for spin-offs

creation of investment incentives

• price differentiation • recoveries • market access

protection and promotion of innovations

• focusing on the needs of leading scientists (e.g. international schools) attracting leading scientists

• allocate educational resources to develop specific areas of competence

• foster natural sciences foster educational

competence

7 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 8: Presentation - Novartis

Switzerland is one of the most innovative and competitive economies

Factors considered: Institutions, infrastructure, macro-economic stability, health and elementary school education, university education and training, efficiency of capital goods markets, jobs market efficiency, development of financial markets, technological developments, market size, developent of companies and innovation

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Source: EVD (2102)

8 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 9: Presentation - Novartis

Switzerland’s strengths

Legal Security 1848 Original form of Swiss constitution

Integration 23% of the population are foreigners

Education 61% of school pupils are in a dual system

Discipline 98% of trains run on time

Industry 83% of 15 to 64- year-olds are in work

Endurance 34 years Rail 2000

9 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 10: Presentation - Novartis

But there are also weaknesses: Switzerland is a very high wage country

Source: BfS (2012)

Labot costs per hour,

in euros

≥ 40.0 30.0 – 39.9 20.0 – 29.9 10.0 – 19.9 < 10.0 No data

10 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 11: Presentation - Novartis

Most OECD countries promote R&D with tax incentives – not Switzerland

Direct government funding of business R&D and tax incentives for R&D, 2009, as a percentage of GDP

0.000.050.100.150.200.250.300.350.40

Sw

itzer

land

Finl

and

Ger

man

y

Sw

eden

Sou

th A

frica

Spa

in

Bra

zil

Turk

ey

Nor

way

Uni

ted

Stat

es

Japa

n

Uni

ted

King

dom

Aus

tralia

Aus

tria

Hun

gary

Por

tuga

l

Net

herla

nds

Slo

veni

a

Irela

nd

Bel

gium

Can

ada

Fran

ce

Direct government funding of BERD Indirect government support through R&D tax incentivesSource: OECD SCIENCE, TECHNOLOGY AND INDUSTRY SCOREBOARD 2011

11 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 12: Presentation - Novartis

Improving the investment environment and encouraging foreign investment

Increasing production output for export: Increasing exports by an average of 11.2 percent annually at current prices, for USD 185.1 billion by 2014 and USD 500 billion by 2023

Reducing the current account deficit from 9.4% to 7% as a percentage of GDP by 2014

Increasing total R&D Expenditure as a percentage of GNP to 2% by 2013, and to 3% by 2023

Supporting R&D and Innovation: Completing regulatory preparations, promoting establishment of laboratories, and facilitating systems of conformity assessment and market oversight to improve product quality and ensure safety of marketed products, to develop a capacity for producing high added-value products.

TURKEY 3- Year Medium-Term Program and Vision 2023

12 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012

Page 13: Presentation - Novartis

Fostering Innovation – Policy Recommendations Attractive framework conditions for

leading class scientific companies which aspire to invest (e.g. IP, tax system)

Provide investment incentives comparable to other countries (e.g. Singapore)

Protect and foster innovation (e.g. differentiated pricing, reimbursement, market access)

Increase attractiveness of location for leading researchers (e.g. international schools, infrastructure)

Build education portfolio with focus on competence fields (foster natural sciences)

13 | Innovation through Corporate R&D | Dr. Stephan Mumenthaler | November 22, 2012