ZURICH (Reuters) -Novartis unveiled a new strategy on Thursday based on eight big drug brands as the pharmaceuticals maker reshapes itself following the decision to spin off its underperforming generics business Sandoz.
Ahead of an investor event, the Swiss company said the currently in-market brands – Cosentyx, Entresto, Zolgensma, Kisqali, Kesimpta, Leqvio, Pluvicto and Scemblix – each held multibillion-dollar peak sales potential.
Novartis also said it would focus in future on five areas for investment: cardiovascular, immunology, neuroscience, solid tumors and hematology medicine – and had “multiple significant in-market and pipeline assets in each of these areas.”
“Our strategy is focused on five core attractive therapeutic areas, key technology platforms, and the U.S. market, with the aim to increase value per new molecular entity from our deep pipeline,” Chief Executive Vas Narasimhan said on Thursday.
The company last month said it planned to spin off Sandoz to sharpen its focus on its patented prescription medicines.
The spin off is expected to be completed in the second half of 2023, Novartis said, with Sandoz listed on the SIX Swiss Exchange.
Novartis has also been pruning its other business interests, spinning off its Alcon eye care business in 2019 and last November agreed to sell a nearly one-third voting stake in Roche.
Narasimhan on Thursday also confirmed Novartis’ previously stated financial targets.
“We will continue to deliver improved financials with +4% sales CAGR through 2027 and a Core Operating Income margin ~40%+ in the mid – long term,” he said.
(Reporting by John RevillEditing by Rachel More and Mark Potter)