NOVARTIS LOOKING TO BE THE BIGGEST
By Adnews Staff
Since two Swiss-based pharmaceutical companies, Sandoz AG and Ciba-Geigy, merged their operations a year ago, the newly formed company has launched five new medications to the Canadian market, and plan to introduce up to 17 in the next three years. The new Canadian subsidiary of the company is called Novartis Pharmaceutical Canada and is based in Montreal. Canadian president Hans Mader said the two companies decided to merge because the market is very risky, costly and fragmented, with no one company holding more than 10% of the total market. "By creating a critical mass and creating a large portfolio of products we can minimize the risks," he says. It also created more efficiencies because portions of the companies, such as administration, have been consolidated. Mader says Novartis is currently the number four pharmaceutical company in Canada in terms of sales. It plans to be number one in the next five years. Worldwide, Mader says Novartis is head-to-head with the number one pharmaceutical company, Glaxo-Wellcome.
The five new products that have been introduced over the year are: Migranal, which is a nasal spray for the treatment of migraine headaches; Foradil, which is taken twice a day for the treatment of asthma; Femara, which is used in the treatment of hormone dependent cancer such as breast cancer and Apligraf, which is its first biotechnology product since the merger. Novartis says the product is equivalent to human skin and will help people with leg ulcers and burns. The latest drug hit the market this week. Called Diovan, the drug is used to treat mild to moderate hypertension.
In regards to marketing, Mader says the company is basically doing the same type of medical education that the companies did when they were on their own, but just more of it. Novartis promotes it products in medical journals and through public relations. It also holds seminars for medical professionals to learn more about their products. One thing that has changed in its marketing, is the number of agencies the company uses. Currently, Novartis has three ad agencies on its roster: Healthcare Marketing Resources, Lally, MacFarland & Pantello and Sudler & Hennessey/Gall, all of Montreal. When the two companies were on their own, Ciba used SMW Advertising, National Pharmacom, BCP Direct and Durnan Communications, all of Toronto, as well as the Adculture Group of Milton, Ont. Sandoz had five agencies on its roster: Bozell Worldwide and DDB Canada, both of Toronto, as well as BOS and Lally, MacFarland & Pantello, both of Montreal and Marketing Communications of London, Ont. Novartis wouldn't comment on how much it spends on advertising each year. On research, its spends about $35 million on sales of $300 million.
When Sandoz and Ciba-Geigy merged last year if formed eight independent sector companies in Canada: Novartis Pharma Canada, Novartis Consumer Health Canada, Ciba Vision Canada, Novartis Nutrition Canada, Gerber Canada, Novartis Animal Health Canada, Novartis Crop Protection Canada and Novartis Seeds Canada. Approximately 59% of its business is health care, 27% is agribusiness and 14% is in the nutrition field.