We want to discover, develop and successfully market innovative products to 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.
Novartis World Headquarters: Basel, Switzerland
Novartis CEO: Daniel Vasella, MD
2004 Worldwide Sales: Group net sales increased 14 percent to $28.2 billion
Pharmaceutical net sales rose 15 percent
Consumer Health net sales gained 10 percent
2004 Net Income: Grew 15 percent to $5.8 billion
Number of Novartis Employees: 81,400 worldwide, operating in over 140 countries
2004 R&D Investment: $4.2 billion
Stock Exchange Listing: NVS; earnings per share USD 2.36 (+16%)
Pharmaceuticals – therapeutic medicines, including Zelnorm®
, in the following areas: cardiovascular &
metabolism, neuroscience, respiratory & dermatology, AGBHI (arthritis, gastrointestinal, bone, hormone replace-
ment therapies, infectious diseases), oncology & hematology, transplantation & immunology and ophthalmics
Sandoz – generic pharmaceuticals
Consumer Health – business units include:
• Over the Counter (OTC) – self-medication products, including Lamisil®
, for the in-home
treatment and prevention of medical conditions and ailments
• Animal Health – treatments and vaccines, including Interceptor®
and Vira Shield®
, for the well-being of
companion animals and the health and productivity of farm animals
• Medical Nutrition – a complete range of enteral nutrition, medical food products and services, including Boost®
• Infant and Baby – infant and toddler nutrition, care and wellness products, including Gerber baby and
• CIBA Vision – optical and ophthalmic products and services, including O2Optix™
lenses and lens care products
Double-digit Pharmaceuticals growth – Pharmaceuticals division outpaces the global market with double-digit
net sales growth of 15 percent. Global market shares increased to 4.5 percent from 4.42 percent.
Positive margin development – Operating income expands faster than net sales as operating margin expands
0.8 percentage points, to 28.4 percent of net sales. Strong organic growth and productivity initiatives continue
to support improved profitability.
Five blockbuster brands – Five top-ranked medicines in key market segments achieve net sales of more than USD
1 billion in 2004, led by Diovan®
. Novartis is on track to deliver seven blockbusters
by 2008 through dynamic growth of young product portfolio.
Cardiovascular and oncology driving growth – Novartis ranks as one of the largest and fastest-growing pharmaceutical
companies in oncology, while Diovan®
are leading medicines in the fight against high blood pressure.
Highly rated pipeline – Strategically balanced development portfolio focuses on promising therapeutic areas, both
in terms of innovative compounds and new indications for in-market products.
Strong patent position – Novartis is consistently ranked as having one of the industry’s lowest exposures to
competition from generics during the next five years, reflecting the launch of 13 new medicines in the United States
Research – Novartis Institutes of BioMedical Research doubles scientific staff at Cambridge headquarters, with
emphasis on biology of diseases with high unmet medical need, and strong commitment to external collaboration
and strategic partnerships.
Corporate citizenship – In 2004, Novartis was able to contribute $570 million to patients in need through access
to medicine programs.
Key Worldwide Products Description
Used in the treatment of hypertension
Used in the treatment of Chronic Myeloid Leukemia (CML) and Gastrointestinal
Stromal Tumors (GIST)
Immunosuppressive agent for transplantations
Used in the treatment of bone metastasis in a variety of tumor types
Used in the treatment of hypertension
Used in the treatment of atherosclerosis vascular disease
Used to reduce blood levels of growth hormone and IGF-I in acromegaly patients
Nonsteroidal anti-inflammatory, antirheumatic agent
ACE inhibitor, antihypertensive agent
Record results reflect our emphasis on sustainable,
organic growth, a product of our constant innovation
strategy and the skills and commitment of
over 81,000 associates worldwide.
Novartis CEO Daniel Vasella