Novartis increases growth potential through integration of Alcon

Novartis growth in new product portfolio and productivity to enable company to absorb the impact of patent losses and maintain robust margins

15-Sep-2011 - Switzerland

Novartis presented an update on its long-term strategy, performance and vision for continued sustainable growth and gave an in-depth overview on the unique position and business model of the new Alcon Division. The company's diversified healthcare portfolio across high growth segments in healthcare as well as geographic distribution provides Novartis with strength and advantages to benefit from current trends in healthcare as well as protection from macroeconomic effects.

The company is on track to deliver against the strategic priorities set out in 2010. Over the last 18 months the company achieved:

  •     Double-digit sales growth through growth of new products that are rejuvenating the portfolio and integration of Alcon
  •     Double-digit core operating income growth increasing its operating leverage
  •     Improved productivity and profitability resulting in margin improvement
  •     Double-digit sales growth in emerging markets
  •     Increasing leadership in innovation, resulting in 17 regulatory approvals in the US and Europe in the Pharmaceuticals Division
  •     Returning over USD 15 billion to shareholders via dividends and share buyback

Further, the acquisition of Alcon offers Novartis a solid growth platform in the eye care segment.

"Alcon is enhancing future prospects for Novartis - it brings to us a fast growing business in the eye care segment. This transaction was about long-term growth and not just cost synergies," said Joseph Jimenez, CEO of Novartis. "We believe that Alcon has significant growth potential by leveraging the Novartis expertise in research, market access, and reimbursement, among others."

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