What we do

Our business model

Resources we use

  • Talented People

    We depend on the skills and creativity of our employees to discover, develop and produce new medicines, and deliver them to patients.

  • Financial Capital

    We use cash, equity and debt to meet our financial commitments, make investments and pay dividends.

  • Intellectual Capital

    We use expertise and data to develop and market our products. We hold patents and trademarks that protect the long-term investments required for our business.

  • Natural Capital

    We consume energy, water and other resources to manufacture our products and operate our business.

  • Technology

    We use artificial intelligence, gene editing and other cutting-edge technologies to spur innovation and increase efficiency.

  • Infrastructure and Facilities

    We own or lease research laboratories, manufacturing sites, offices and distribution facilities around the world.

  • Relationships

    We work with doctors to get effective treatments to patients. We partner with external organizations to accelerate drug discovery, develop business opportunities and expand patient access.

Our business model (Graphic)

The value we create

  • Jobs

    1.3 m

    Indirect, induced (2018)

    108 775

    Own operations

  • Shareholder Returns

    22.3 %

    2019 total shareholder return (USD), including Alcon spin-off

    6.6 bn

    Total dividends paid (USD)

  • Taxes Paid

    1.9 bn

    (USD)

  • Improved Health and Well-Being

    67 bn

    Social impact (USD, 2018), based on estimated value of health benefits to patients

  • Access to Medicine and Healthcare

    799 m

    Patients reached with Novartis medicines

    10 m

    People reached through training and health education programs

Our products

Our products address most major disease areas and are sold in approximately 155 countries around the world. Our manufacturing facilities produced 72 billion treatments in 2019.

We develop and produce innovative medicines to address patient needs in disease areas where our experience and knowledge have the potential to produce transformative treatments.

  • Oncology
  • Respiratory
  • Neuroscience
  • Cardiovascular, renal and metabolism
  • Immunology, hepatology and dermatology
  • Infectious Diseases
  • Ophthalmology

We also offer about 1 000 generic and biosimilar medicines covering a broad range of therapeutic areas. They can bring substantial savings to patients and healthcare systems, and help improve access to healthcare.

  • Pills
  • Injections
  • Inhalers

Our environment

We live in an era of amazing medical innovation, driven by better understanding of the genetic and biological roots of disease, and surging use of data analytics and digital technology in science and healthcare. At the same time, the world’s population continues to grow and people are living longer, fueling a rise in chronic diseases. Together, these factors are increasing demand for high-quality care worldwide and pressuring healthcare systems to restrain spending growth.

Accelerating innovation

39 %

The rise in the average yearly number of new drugs approved by the US FDA’s Center for Drug Evaluation and Research from 2015-2019, compared to 2010-2014

 

235 bn

The projected value of the global digital health market by 2023 (USD), a 60% increase from 2019, according to the Frost & Sullivan Global Digital Health Outlook 2020

Aging population

997 m

The projected number of people in the world aged 65 or older by 2030, a 64% increase from 2015, according to the United Nations World Population Prospects

Healthcare spending

5 %

The expected annual average growth in healthcare spending between 2019 and 2023, according to the Economist Intelligence Unit

Our strategy

Our strategy is to build a leading, focused medicines company powered by advanced therapy platforms and data science.

As we implement our strategy, we have five priorities to shape our future and help us continue to create value for our company, our shareholders and society.

Strategic priorities

Unleash the power of our people (Icon) Unleash the power of our people We are transforming our culture to ensure people can fully apply their talent and energy. We’re creating an organization where people are inspired, curious and unbossed. Deliver transformative innovation (Icon) Deliver transformative innovation In our pursuit of transformative treatments, we challenge medical paradigms and explore possibilities to cure disease, intervene earlier in chronic illnesses, and find ways to dramatically improve quality of life. Embrace operational excellence (Icon) Embrace operational excellence We are rethinking how we work, embracing agile teams and building better productivity into our company to free resources that we can invest in innovation and help boost returns. Go big on data and digital (Icon) Go big on data and digital We aim to spark a digital revolution at Novartis, embracing digital technologies, advanced analytics and artificial intelligence to help drive innovation and improve efficiency. Build trust with society (Icon) Build trust with society We strive to build trust with society through our efforts to operate with high values and integrity, and to find new ways to expand patients’ access to our treatments.