Final report

ANUM ZAHRA 134

SUBMITTED TO

SIR ABDUL KHALIQ

NOVARTIS
CH-4002 BASEL SWITZERLAND 41613241111 41613248001 12/20/2012

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.

TABLE OF CONTENTS Introduction

Background of Novartis..3 Purpose ...4 Scope...4 Method used4 History.5 Mission & vision.6 Offices of Novartis in Pakistan6-7 List of competitors...8

Body
Fishbone diagram 9 Histrogram10-11 Checklist for the cooperate strategies12 Products..13 Products in Pakistan...14 Customer contact matrix.15 Product matrix.16 Productivity flow chart17 Culture of organization18 Competitive advantages...19 Training undergone .20 Success stories21-27 Failures/threats.28

Conclusion...29 Recommendations..30 Bibliography31 Glossary..31-32

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 peoples 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).

PURPOSE The purpose of report is to get information about Novartis pharmaceutical company which is working in 140 countries.
The report covers the companys 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 AGs 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

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.

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)

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

LIST OF COMPETITORS

FISH BONE DIAGRAM REGARDING ISSUES OF PRODUCTIVITY

Work force INOVATION

Bonuses & benefits

Technolog y Pipeline industry

R&d prog

Continuous training

PRODUCTIVE EFFICIENCY Proved by FDA

Pipeline industry Harmless drugs Quality

R&D prog Diagnostic tools & capital

DIVERSIFICATION

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GRAPH OF PRODUCTIVITY

SALES 7567800 7266120 7459640 7735281 6910000 7248552 7148352

YEARS 2006 2007 2008 2009 2010 2011 2012

SALES 7568600 7735281

YEARS

7266120

7459640

6910000

7248552

7148352

2006 1

2007 2

2008 3

2009 4

2010 5

2011 6

2012 7

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UNITS PRODUCED CO DIVON 2000 1800 1850 1900 2050 2100

YEARS 2007 2008 2009 2010 2011 2012

2150 2100 2050 2000 1950 1900 1850 1800 1750 1700 1650 1 2 3 4 5 6 7 UNITS PRODUCED CO DIVON YEARS

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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

Afinitor Comtan Diovan Exjade Femara Focalin Galvus Gleevec Lescol Lotrel Lucentis Ritalin Exelon Sandimmune and Neoral Sandostatin Tasigna Tegretol Termalgin - (Paracetamol and compounds.) Tobramycin Trileptal Voltaren Zometa Tofranil

Indication(s) or drug type/class

Organ transplants and cancers Parkinson's disease Hypertension Ironchelator Breast cancer AD/HD Anti-diabetic medication Chronic myelogenous leukemia hypercholesterolemia Hypertension Age-related macular degeneration AD/HD Alzheimer's disease Organ transplantation Acromegaly Chronic myelogenous leukemia (CML); first line treatment of CML[29] Epilepsy Treatment of fever and light pain. Cystic fibrosis Epilepsy anti-inflammatory Cancer complications antidepressant

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PRODUCTS AVAILABLE IN PAKISTAN

TAB MEPRESSOR 100 MG 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

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Customer contact matrix

less customer contact & customization

PROCESS CHARACTERISTICS High interact Some interact Low interact

Flexible flow

Front office e.g medical stores

Flexible flow Medium flexibility

Hybrid officee.g distributers

Lowest complexibility

Back office e.g company

There is less process divergence & more line flows vertically

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PRODUCT MATRIX
less customization & higher volume less divergence & more line flow vertically

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 Disconnected line flows moderately repetitive work

Job process e.g DIVON For Heart failures Batch process 1.smalle.g ANNOVA 2.large e.g MEPRESSER General blood pressure Line process e.g ELGIN multivitamin vitamin B 12 Continuous flow process e.g VOLTRAL pain killer

Connected line highly repetitive work Continuous flow

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PRODUCTIVITY FLOW CHART

CO-DIVON

FORMUL 160/25

PROPER MIXING OF valsartan & hydrochlorothiazide

Analyse the problem

Checking the quality whether meet the standard or

Stop the production

no

yes
Dispatch the production

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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 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

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COMPETITIVE ADVANTAGES IN PAKISTAN & INTERNATIONALY

STRENGTHS Market leader Strong cns image of Novartis Strong brand image heritage valuation

Strengths

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

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COST-SAVING GENERIC PHARMACEUTICALS PREVENTIVE VACCINES DIAGNOSTIC TOOLS CONSUMER HEALTH CARE PRODUCTS LOW COST QUALITY MEDICINES 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 worlds 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

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Success stories
Rankings and awards 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

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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.

MedAdNews
Novartis named Most Admired Pharmaceutical Company 2012 for the 4th consecutive year.

Sciences 2012 Top Employer

Novartis ranked no. 11 on Sciences Top 20 Employers list.

Eurobrands Global Top 100 Brand Corporations

Novartis brand ranks no. 39 globally and no. 2 in Switzerland.

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2012 Working Mothers 100 Best Companies

Novartis Pharma US named one of the best employers for working mothers.

Universums Worlds 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.

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European Graduate Barometer 2012 Frankfurter AllgemeineZeitung

Novartis enters the list of the 50 preferred employers among European Engineering/IT students.

Transparency in corporate reporting: Assessing the worlds 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

Worlds Most Respected Companies 2012 by Barrons

Novartis ranks again as the most respected healthcare company in The Worlds Most Respected Companies by US business magazine Barrons

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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

Computerworlds 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 Scientists Best Places to Work: Industry 2012

Novartis again among top 20 companies globally climbing one spot to No. 17.

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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.

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.

Interbrands 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-Finances 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.

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Novartis CEO Joseph Jimenez receives CEO in Action award

Novartis CEO Joseph Jimenez receives "CEO in Action" award for commitment and engagement in Novartis Diversity & Inclusion initiatives.

Fortunes Worlds 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

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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

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

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 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 benefit planning & incentives. their aims to retain their sales force through

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 Neuroscience summit : patent evaluation programs for major brands of NEUROSCIENCE .

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Total35 top kols (autoimmune diseases) from NEUROLOGY & PSYCHATRY.

BIBLIOGRAPHY
WWW.NOVARTIS.COM YOUSIGMA-WEBS INFORMATION DR.M.QASIM AWAN MOST EXTENSIVE RESOURCE FOR

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 Lchte Jrgensen (PhD) rhus 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 Potential indifferent indications

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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.