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Novartis: Global Pharmaceutical Company

January 4, 2016

Norvartis International AG,it was formed from the 1996 merger of Swiss companies, Ciba-Geigy and Sandoz Laboratories. The companies had long histories. Ciba-Geigy was formed in 1970 by the merger of J.R. Geigy Ltd (founded in Basel in 1758) and CIBA (founded in Basel in 1859).

When the two companies merged the pharmaceutical and agrochemical divisions of both companies formed Novartis as an independent entity. Other Ciba-Geigy and Sandoz businesses were sold, or like Ciba Speciality Chemicals, spun off as independent companies. The Sandoz brand disappeared for 3 years. In 2003 it was revived when Novartis consolidated its generic drugs business into a single subsidiary and named it Sandoz. Novartis divested its agrochemical and genetically modified crops business in 2000 with the spinout of Syngenta in partnership with AstraZeneca, which also divested its agrochemical business.

Novartis AG, is a publicly traded Swiss holding company that operates through Novartis Group. Novartis owns directly, or indirectly all companies worldwide that operate as subsidiaries of the Novartis Group. Based in Basel, Switzerland, it was ranked number one in sales ($57.9 billion) among the worldwide industry in 2013. Novartis in July 2015, had a market-cap of approximately $280 billion making it the largest healthcare company by this parameter.

The business of Novartis is divided into three operating divisions: Pharmaceuticals, Alcon (eye care) and Sandoz (generics). Novartis operates directly and through dozens of subsidiaries in countries all over the world, each of which fall under one of the divisions, and that Novartis categorizes as fulfilling one or more of the following functions: “Holding/Finance: the entity is a holding company and/or performs finance functions for the Group; Sales: the entity performs sales and marketing activities for the Group; Production: the entity performs manufacturing and/or production activities for the Group; and Research; the entity performs research and development activities by the Group.

Novartis registered revenue of $53.63 billion in 2013 with net income of $11.08 billion.

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