Novartis
Encyclopedia
Novartis International AG is a multinational
pharmaceutical company
based in Basel, Switzerland, ranking number three in sales among the world-wide industry. Company sales totalled 36.173 billion US$ in 2008.
In 2009, Novartis was the sixth largest pharmaceutical company in terms of revenue ($41.5 billion in 2009) with a profit margin of about 20%, which is the same as its industry competitors.
Novartis manufactures such drugs as clozapine
(Clozaril), diclofenac
(Voltaren), carbamazepine
(Tegretol), valsartan
(Diovan), imatinib mesylate and (Gleevec / Glivec). Additional agents include ciclosporin
(Neoral / Sandimmun), letrozole
(Femara), methylphenidate
(Ritalin), terbinafine
(Lamisil), and others.
Renamed to Novartis following an acquisition by Ciba-Geigy, it owns Sandoz
, a large manufacturer of generic drug
s. The company formerly owned the Gerber Products Company
, a major infant and baby products producer, but sold it to Nestlé
on 1 September 2007.
Novartis is a full member of the European Federation of Pharmaceutical Industries and Associations
(EFPIA) and of the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA)
safety assessment is the InnoMed PredTox. The company is expanding its activities in joint research projects within the framework of the Innovative Medicines Initiative
of EFPIA and the European Commission
. The company's research operations have their global headquarters in Cambridge, Massachusetts
.
Novartis was created in 1996 from the merger of Ciba-Geigy and Sandoz Laboratories, both Swiss companies with 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). Combining the histories of the merger partners, the company's effective history spans 250 years.
, Switzerland
. Johann Rudolf Geigy-Merian (1830–1917) and Johann Muller-Pack acquired a site in Basel in 1857, where they built a dyewood mill and a dye
extraction plant. Two years later, they began the production of synthetic fuchsine
. In 1901, they formed the public limited company
Geigy and the name of the company was changed to J. R. Geigy Ltd in 1914.
In 1859, Alexander Clavel (1805 1873) took up the production of fuchsine
in his factory for silk
-dyeing works in Basel. In 1864, a new site for the production of synthetic dyes was constructed, and in 1873, Clavel sold his dye factory to the new company Bindschedler and Busch. In 1884, Bindschedler and Busch was transformed into a joint-stock company with the name "Gesellschaft für Chemische Industrie Basel" (Company for Chemical Industry Basel). The acronym, CIBA, was adopted as the company's name in 1945.
In 1925, J. R. Geigy Ltd. began producing textile auxiliaries, an activity which Ciba took up in 1928.
In 1939, Geigy chemist Paul Hermann Müller
discovered that DDT
was effective against malaria-bearing insects. He received the 1948 Nobel Prize in Medicine for this work.
CIBA and Geigy merged in 1971 to form Ciba‑Geigy Ltd. (icon).
In 1996 this company merged with Sandoz , with the pharmaceutical divisions of both staying together to form Novartis, other Ciba-Geigy businesses being spun off as independent companies.
. Further pharmaceutical research began in 1917 under Arthur Stoll
(1887–1971), who is the founder of Sandoz's pharmaceutical department in 1917. In 1918, Arthur Stoll isolates ergotamine from ergot
; the substance is eventually used to treat migraine and headeaches and is introduced under the trade name Gynergen in 1921.
Between the World Wars, Gynergen (1921) and Calcium-Sandoz (1929) were brought to market. Sandoz also produced chemicals for textile
s, paper
, and leather
, beginning in 1929. In 1939, the company began producing agricultural chemicals.
The psychedelic
effects of lysergic acid diethylamide (LSD) were discovered at the Sandoz laboratories in 1943 by Arthur Stoll and Albert Hofmann
(patent by Stoll and Hofmann in USA on Mar. 23, 1948). Sandoz began clinical trials and marketed the substance, from 1947 through the mid 1960s, under the name Delysid as a psychiatric
drug, thought useful for treating a wide variety of mental ailments, ranging from alcoholism
to sexual deviancy. Sandoz suggested in its marketing literature that psychiatrists take LSD themselves, to gain a better subjective understanding of the schizophrenic
experience, and many did exactly that and so did other scientific researchers. For several years, the psychedelic drugs also were called "psychotomimetic
" because they were thought to mimic psychosis
. Later research caused this term to be abandoned, as neuroscientists gained a better understanding of psychoses, including schizophrenia. Research on LSD peaked in the 1950s and early 1960s. Sandoz withdrew the drug from the market in the mid-1960s. The drug became a cultural novelty of the 1960s after psychologist Timothy Leary
at Harvard University
began to promulgate its use for recreational and spiritual experiences among the general public.
Sandoz opened its first foreign offices in 1964.
In 1967, Sandoz merged with Wander AG (known for Ovomaltine and Isostar
). Sandoz acquired the companies Delmark, Wasabröd
(a Swedish
manufacturer of crisp bread
), and Gerber Products Company
(a baby food
company).
On 1 November 1986, a fire broke out in a production plant storage room, which led to Sandoz chemical spill
and a large amount of pesticide
being released into the upper Rhine river. This exposure killed many fish and other aquatic life.
In 1995, Sandoz spun off its specialty chemicals business to form Clariant
. Subsequently, in 1997, Clariant merged with the specialty chemicals business that was spun off from Hoechst AG
in Germany
.
In 2005, Sandoz expanded significantly though the acquisition of Hexal, one of Germany's leading generic drug
companies, and Eon Labs, a fast-growing United States generic pharmaceutical company.
"Sandoz" continues to be used as a Novartis generic drug brand (see below for details).
After the merger, Novartis reorganized its operating units and spun out its chemical activities as Ciba Specialty Chemicals
(now a part of BASF
).
In 1998, the company made headlines with its biotechnology
licensing agreement with the University of California at Berkeley Department of Plant and Microbial Biology
. Critics of the agreement expressed concern over prospects that the agreement would diminish academic objectivity, or lead to the commercialization of genetically modified plants. The agreement expired in 2003.
Novartis combined its agricultural division with that of AstraZeneca
to create, Syngenta
, in November 2000.
In 2003, Novartis created a subsidiary that bundles its generic drug production, reusing the predecessor brand name of Sandoz.
In 2005, Novartis introduced Certican (Everolimus
), an immunosuppressant, and in October 2006 began marketing Telbivudine
, a new antiviral drug for hepatitis B.
On 20 April 2006, Novartis acquired the California-based Chiron Corporation
. Chiron formerly was divided into three units: Chiron Vaccines, Chiron Blood Testing, and Chiron BioPharmaceuticals, to be integrated into Novartis Pharmaceuticals. Chiron Vaccines and Chiron Blood Testing now are combined to form Novartis Vaccines and Diagnostics.
The ongoing Basel Campus Project has the aim to transform the St. Johann site - Novartis headquarters in Basel - "from an industrial complex to a place of innovation, knowledge, and encounter".
On 12 October 2009, Novartis has entered into an agreement for exclusive US and Canadian rights to Fanapt(iloperidone), a new oral medication that is approved by the U.S. Food and Drug Administration
(FDA) for the acute treatment of adults with schizophrenia.
On 6 November 2009, Novartis reached an agreement to acquire an 85% stake in the Chinese vaccines company Zhejiang Tianyuan Bio-Pharmaceutical Co., Ltd. as part of a strategic initiative to build a vaccines industry leader in this country and expand the Group's limited presence in this fast-growing market segment. This proposed acquisition will require government and regulatory approvals in China.
On 4 January 2010, Novartis offered to pay US $39.3 billion to fully acquire Alcon
, the world's largest eye-care company, including a majority stake held by Nestlé
. Novartis had bought 25% of Alcon in 2008.
On 11 March 2010, Novartis settled their patent suit in the US District Court for the District of New Jersey with IntelliPharmaCeutics International, Ltd.
, a Canada-based specialty pharmaceutical company, and its licensee Par Pharmaceutical Inc. over a generic version of the attention deficit hyperactivity disorder drug Focalin XR (dexmethylphenidate hydrochloride).
The buildings gradually were demolished and replaced with works by architects and artists of international stature. Frank Gehry
, Rafael Moneo
, and from SANAA, Kazuyo Sejima
and Ryue Nishizawa
were among the architects and Jenny Holzer
and Richard Serra
among the artists. Marked diversity of forms now dominates the campus. Novel features and technologies were introduced by Gehry to conform to the building standards of the Swiss government that prohibit air-conditioning, while still selecting a contemporary style of massive use of glass exteriors. One adaptation by the architect includes the integration of a building vent, teepee-style, through the roof, which creates a chimney effect that draws cool air in at the lower levels and vents warmer air.
In January 2009, the United States Department of Health and Human Services
awarded Novartis a $486 million contract for construction of the first U.S. plant to produce cell-based influenza vaccine, to be located in Holly Springs, North Carolina
. The stated goal of this program is the capability of producing 150,000,000 doses of pandemic vaccine within six months of declaring a flu pandemic.
Livestock
Bioprotection (insect and rodent control)
(Switzerland), Shanghai
(China), and Cambridge
(USA). Operations in China are set for rapid expansion within the next five years.
Major therapeutic areas are autoimmunity/transplantation/inflammatory disease, cardiovascular disease, diabetes, gastrointestinal disease, infectious diseases, musculoskeletal disease, neuroscience, oncology, ophthalmology, and respiratory diseases.
seeking to prohibit the country from developing generic drug
s based on patent
ed medicine
s. Novartis had challenged a law that allows India to refuse to recognize a patent for an existing medicine if there is a modified formula resulting in a re-patent of the drug. Oxfam
claimed that "If Novartis wins millions of people living in poverty world wide could be deprived of affordable medicines". Oxfam
along with FairPensions
asked institutional investors to use their shareholder rights to put pressure on Novartis to drop its appeal. On August 5, 2007, an Indian court in Chennai
ruled against Novartis saying that, "Novartis' legal challenge - mounted to limit competition to its own patented medicines - was a threat to people suffering from cancer
, HIV
and AIDS
, diabetes and other diseases who are too poor to pay for them." The high court also claimed to have no jurisdiction on whether Indian Patent law complied with WTO patent guidelines.
In the months leading up to the hearing, more than half a million people wrote to the CEO of Novartis expressing their opposition to the suit. However, Novartis decided to appeal the ruling and sought the Supreme Court's intervention in the matter.
(FDA) sent a notice to Novartis Pharmaceuticals regarding its advertising of Focalin XR, an ADHD drug, in which the company overstated its efficacy while marketing to the public and medical professionals.
that he would consider offering discounted pricing to low-income nations, but unlike GlaxoSmithKline
, would not offer vaccines for free.
since 2002, in matters of pay, promotion, and treatment after learning that the employees were pregnant
. Two days later (the trial was bifurcated so that the punitive damages verdict was argued and deliberated separately), the jury awarded punitive damages
in the amount of $250 million, representing about 2% of Novartis' gross revenues for 2009. Normally punitive damages would be reduced to less than a 10-1 ratio, but the trial was for a group of named plaintiffs in a class action
, who were representing a class of 5,600 class members. The jury was instructed to award compensatory damages just to the named plaintiffs, but to award punitive damages to the entire class. Once the court makes findings on compensatory damages for the remaining class members (which are estimated by plaintiffs' counsel at just under $1 billion), the $250 million is expected to satisfy the Supreme Court's single-digit ratio test for proportionality of compensatory to punitive damages.
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
pharmaceutical company
Pharmaceutical company
The pharmaceutical industry develops, produces, and markets drugs licensed for use as medications. Pharmaceutical companies are allowed to deal in generic and/or brand medications and medical devices...
based in Basel, Switzerland, ranking number three in sales among the world-wide industry. Company sales totalled 36.173 billion US$ in 2008.
In 2009, Novartis was the sixth largest pharmaceutical company in terms of revenue ($41.5 billion in 2009) with a profit margin of about 20%, which is the same as its industry competitors.
Novartis manufactures such drugs as clozapine
Clozapine
Clozapine is an antipsychotic medication used in the treatment of schizophrenia, and is also used off-label in the treatment of bipolar disorder. Wyatt. R and Chew...
(Clozaril), diclofenac
Diclofenac
Diclofenac is a non-steroidal anti-inflammatory drug taken to reduce inflammation and as an analgesic reducing pain in certain conditions....
(Voltaren), carbamazepine
Carbamazepine
Carbamazepine is an anticonvulsant and mood-stabilizing drug used primarily in the treatment of epilepsy and bipolar disorder, as well as trigeminal neuralgia...
(Tegretol), valsartan
Valsartan
Valsartan is an angiotensin II receptor antagonist , with particularly high affinity for the type I angiotensin receptor. By blocking the action of angiotensin, valsartan dilates blood vessels and reduces blood pressure...
(Diovan), imatinib mesylate and (Gleevec / Glivec). Additional agents include ciclosporin
Ciclosporin
Ciclosporin , cyclosporine , cyclosporin , or cyclosporin A is an immunosuppressant drug widely used in post-allogeneic organ transplant to reduce the activity of the immune system, and therefore the risk of organ rejection...
(Neoral / Sandimmun), letrozole
Letrozole
Letrozole is an oral non-steroidal aromatase inhibitor for the treatment of hormonally-responsive breast cancer after surgery.Estrogens are produced by the conversion of androgens through the activity of the aromatase enzyme...
(Femara), methylphenidate
Methylphenidate
Methylphenidate is a psychostimulant drug approved for treatment of attention-deficit hyperactivity disorder, postural orthostatic tachycardia syndrome and narcolepsy. It may also be prescribed for off-label use in treatment-resistant cases of lethargy, depression, neural insult and obesity...
(Ritalin), terbinafine
Terbinafine
Terbinafine hydrochloride is a...
(Lamisil), and others.
Renamed to Novartis following an acquisition by Ciba-Geigy, it owns Sandoz
Sandoz
Founded in 2003, Sandoz presently is the generic drug subsidiary of Novartis, a multinational pharmaceutical company. The company develops, manufactures and markets generic drugs as well as pharmaceutical and biotechnological active ingredients....
, a large manufacturer of generic drug
Generic drug
A generic drug is a drug defined as "a drug product that is comparable to brand/reference listed drug product in dosage form, strength, route of administration, quality and performance characteristics, and intended use." It has also been defined as a term referring to any drug marketed under its...
s. The company formerly owned the Gerber Products Company
Gerber Products Company
Gerber Products Company is a purveyor of baby food and baby products. A former American-owned company, Gerber is now a subsidiary of Nestlé, and is currently located in Fremont, Michigan, USA.-History:...
, a major infant and baby products producer, but sold it to Nestlé
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
on 1 September 2007.
Novartis is a full member of the European Federation of Pharmaceutical Industries and Associations
European Federation of Pharmaceutical Industries and Associations
European Federation of Pharmaceutical Industries and Associations is a Brussels-based trade union founded in 1978 representing the research-based pharmaceutical industry operating in Europe....
(EFPIA) and of the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA)
Collaborative research
In addition to internal research and development activities Novartis is also involved in publicly funded collaborative research projects, with other industrial and academic partners. One example in the area of non-clinicalPre-clinical development
In drug development, pre-clinical development is a stage of research that begins before clinical trials can begin, and during which important feasibility, iterative testing and drug safety data is collected....
safety assessment is the InnoMed PredTox. The company is expanding its activities in joint research projects within the framework of the Innovative Medicines Initiative
Innovative Medicines Initiative
The Innovative Medicines Initiative is a European initiative to improve the competitive situation of the European Union in the field of pharmaceutical research...
of EFPIA and the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
. The company's research operations have their global headquarters in Cambridge, Massachusetts
Cambridge, Massachusetts
Cambridge is a city in Middlesex County, Massachusetts, United States, in the Greater Boston area. It was named in honor of the University of Cambridge in England, an important center of the Puritan theology embraced by the town's founders. Cambridge is home to two of the world's most prominent...
.
History
Ciba-Geigy
Johann Rudolf Geigy-Gemuseus (1733–1793) began trading in 1758 in "materials, chemicals, dyes and drugs of all kinds" in BaselBasel
Basel or Basle In the national languages of Switzerland the city is also known as Bâle , Basilea and Basilea is Switzerland's third most populous city with about 166,000 inhabitants. Located where the Swiss, French and German borders meet, Basel also has suburbs in France and Germany...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
. Johann Rudolf Geigy-Merian (1830–1917) and Johann Muller-Pack acquired a site in Basel in 1857, where they built a dyewood mill and a dye
Dye
A dye is a colored substance that has an affinity to the substrate to which it is being applied. The dye is generally applied in an aqueous solution, and requires a mordant to improve the fastness of the dye on the fiber....
extraction plant. Two years later, they began the production of synthetic fuchsine
Fuchsine
Fuchsine or rosaniline hydrochloride is a magenta dye with chemical formula C20H19N3·HCl. There are other similar chemical formulations of products sold as fuchsine, and several dozen other synonyms of this molecule....
. In 1901, they formed the public limited company
Public limited company
A public limited company is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions....
Geigy and the name of the company was changed to J. R. Geigy Ltd in 1914.
In 1859, Alexander Clavel (1805 1873) took up the production of fuchsine
Fuchsine
Fuchsine or rosaniline hydrochloride is a magenta dye with chemical formula C20H19N3·HCl. There are other similar chemical formulations of products sold as fuchsine, and several dozen other synonyms of this molecule....
in his factory for silk
Silk
Silk is a natural protein fiber, some forms of which can be woven into textiles. The best-known type of silk is obtained from the cocoons of the larvae of the mulberry silkworm Bombyx mori reared in captivity...
-dyeing works in Basel. In 1864, a new site for the production of synthetic dyes was constructed, and in 1873, Clavel sold his dye factory to the new company Bindschedler and Busch. In 1884, Bindschedler and Busch was transformed into a joint-stock company with the name "Gesellschaft für Chemische Industrie Basel" (Company for Chemical Industry Basel). The acronym, CIBA, was adopted as the company's name in 1945.
In 1925, J. R. Geigy Ltd. began producing textile auxiliaries, an activity which Ciba took up in 1928.
In 1939, Geigy chemist Paul Hermann Müller
Paul Hermann Müller
Paul Hermann Müller also known as Pauly Mueller was a Swiss chemist and Nobel laureate. In 1948 he received the Nobel Prize in Physiology or Medicine for his 1939 discovery of insecticidal qualities and use of DDT in the control of vector diseases such as malaria and yellow fever.Müller was born...
discovered that DDT
DDT
DDT is one of the most well-known synthetic insecticides. It is a chemical with a long, unique, and controversial history....
was effective against malaria-bearing insects. He received the 1948 Nobel Prize in Medicine for this work.
CIBA and Geigy merged in 1971 to form Ciba‑Geigy Ltd. (icon).
In 1996 this company merged with Sandoz , with the pharmaceutical divisions of both staying together to form Novartis, other Ciba-Geigy businesses being spun off as independent companies.
Sandoz
The Chemiefirma Kern und Sandoz ("Kern and Sandoz Chemistry Firm") was founded in 1886 by Alfred Kern (1850–1893) and Edouard Sandoz (1853–1928). The first dyes manufactured by them were alizarine blue and auramine. After Kern's death, the partnership became the corporation Chemische Fabrik vormals Sandoz in 1895. The company began producing the fever-reducing drug antipyrin in the same year. In 1899, the company began producing the sugar substitute, saccharinSaccharin
Saccharin is an artificial sweetener. The basic substance, benzoic sulfilimine, has effectively no food energy and is much sweeter than sucrose, but has a bitter or metallic aftertaste, especially at high concentrations...
. Further pharmaceutical research began in 1917 under Arthur Stoll
Arthur Stoll
Arthur Stoll was a Swiss biochemist.- Life and work:The son of a teacher and school headmaster, he studied chemistry at the ETH Zurich, with a PhD in 1911, where he studied with Richard Willstatter...
(1887–1971), who is the founder of Sandoz's pharmaceutical department in 1917. In 1918, Arthur Stoll isolates ergotamine from ergot
Ergot
Ergot or ergot fungi refers to a group of fungi of the genus Claviceps. The most prominent member of this group is Claviceps purpurea. This fungus grows on rye and related plants, and produces alkaloids that can cause ergotism in humans and other mammals who consume grains contaminated with its...
; the substance is eventually used to treat migraine and headeaches and is introduced under the trade name Gynergen in 1921.
Between the World Wars, Gynergen (1921) and Calcium-Sandoz (1929) were brought to market. Sandoz also produced chemicals for textile
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
s, paper
Paper
Paper is a thin material mainly used for writing upon, printing upon, drawing or for packaging. It is produced by pressing together moist fibers, typically cellulose pulp derived from wood, rags or grasses, and drying them into flexible sheets....
, and leather
Leather
Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin, primarily cattlehide. It can be produced through different manufacturing processes, ranging from cottage industry to heavy industry.-Forms:...
, beginning in 1929. In 1939, the company began producing agricultural chemicals.
The psychedelic
Psychedelic
The term psychedelic is derived from the Greek words ψυχή and δηλοῦν , translating to "soul-manifesting". A psychedelic experience is characterized by the striking perception of aspects of one's mind previously unknown, or by the creative exuberance of the mind liberated from its ostensibly...
effects of lysergic acid diethylamide (LSD) were discovered at the Sandoz laboratories in 1943 by Arthur Stoll and Albert Hofmann
Albert Hofmann
Albert Hofmann was a Swiss scientist known best for being the first person to synthesize, ingest and learn of the psychedelic effects of lysergic acid diethylamide . He authored more than 100 scientific articles and a number of books, including LSD: My Problem Child...
(patent by Stoll and Hofmann in USA on Mar. 23, 1948). Sandoz began clinical trials and marketed the substance, from 1947 through the mid 1960s, under the name Delysid as a psychiatric
Psychiatry
Psychiatry is the medical specialty devoted to the study and treatment of mental disorders. These mental disorders include various affective, behavioural, cognitive and perceptual abnormalities...
drug, thought useful for treating a wide variety of mental ailments, ranging from alcoholism
Alcoholism
Alcoholism is a broad term for problems with alcohol, and is generally used to mean compulsive and uncontrolled consumption of alcoholic beverages, usually to the detriment of the drinker's health, personal relationships, and social standing...
to sexual deviancy. Sandoz suggested in its marketing literature that psychiatrists take LSD themselves, to gain a better subjective understanding of the schizophrenic
Schizophrenia
Schizophrenia is a mental disorder characterized by a disintegration of thought processes and of emotional responsiveness. It most commonly manifests itself as auditory hallucinations, paranoid or bizarre delusions, or disorganized speech and thinking, and it is accompanied by significant social...
experience, and many did exactly that and so did other scientific researchers. For several years, the psychedelic drugs also were called "psychotomimetic
Psychotomimetic
A drug with psychotomimetic actions mimics the symptoms of psychosis, including delusions and/or delirium, as opposed to just hallucinations. Some drugs of the opioid class have psychotomimetic effects, such as pentazocine and butorphanol....
" because they were thought to mimic psychosis
Psychosis
Psychosis means abnormal condition of the mind, and is a generic psychiatric term for a mental state often described as involving a "loss of contact with reality"...
. Later research caused this term to be abandoned, as neuroscientists gained a better understanding of psychoses, including schizophrenia. Research on LSD peaked in the 1950s and early 1960s. Sandoz withdrew the drug from the market in the mid-1960s. The drug became a cultural novelty of the 1960s after psychologist Timothy Leary
Timothy Leary
Timothy Francis Leary was an American psychologist and writer, known for his advocacy of psychedelic drugs. During a time when drugs like LSD and psilocybin were legal, Leary conducted experiments at Harvard University under the Harvard Psilocybin Project, resulting in the Concord Prison...
at Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
began to promulgate its use for recreational and spiritual experiences among the general public.
Sandoz opened its first foreign offices in 1964.
In 1967, Sandoz merged with Wander AG (known for Ovomaltine and Isostar
Isostar
Isostar is a sports drink sold in Europe. It is similar to Gatorade and Powerade in that it hydrates and provides energy through glucose. Isostar was first created in Switzerland in 1977.- Products :...
). Sandoz acquired the companies Delmark, Wasabröd
Wasabröd
The Swedish company Wasabröd is the largest producer in the world of Scandinavian style crisp bread . The Wasabröd company has been in business since 1919, opening its first bakery in the city of Skellefteå...
(a Swedish
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
manufacturer of crisp bread
Crisp bread
Crisp bread or hard bread is a flat and dry type of bread or cracker, containing mostly rye flour...
), and Gerber Products Company
Gerber Products Company
Gerber Products Company is a purveyor of baby food and baby products. A former American-owned company, Gerber is now a subsidiary of Nestlé, and is currently located in Fremont, Michigan, USA.-History:...
(a baby food
Baby food
Baby food is any food, other than breastmilk or infant formula, that is made specifically for infants, roughly between the ages of four to six months to 2 years. The food comes in multiple varieties and tastes, can be produced by many manufacturers, or may be table food that the rest of the family...
company).
On 1 November 1986, a fire broke out in a production plant storage room, which led to Sandoz chemical spill
Sandoz chemical spill
The Sandoz chemical spill was a major environmental disaster caused by a fire and its subsequent extinguishing at Sandoz agrochemical storehouse in Schweizerhalle, Basel-Landschaft, Switzerland, on November 1, 1986, which released toxic agrochemicals into the air and resulted in tons of pollutants...
and a large amount of pesticide
Pesticide
Pesticides are substances or mixture of substances intended for preventing, destroying, repelling or mitigating any pest.A pesticide may be a chemical unicycle, biological agent , antimicrobial, disinfectant or device used against any pest...
being released into the upper Rhine river. This exposure killed many fish and other aquatic life.
In 1995, Sandoz spun off its specialty chemicals business to form Clariant
Clariant
Clariant is a Swiss speciality chemical company which was formed in 1995 as a spin off from Sandoz.- Business :The company has a turnover of around US$8 billion and is headquartered in Muttenz, near Basel, Switzerland....
. Subsequently, in 1997, Clariant merged with the specialty chemicals business that was spun off from Hoechst AG
Hoechst AG
Hoechst AG was a German chemicals then life-sciences company that became Aventis Deutschland after its merger with France's Rhône-Poulenc S.A. in 1999...
in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
.
In 2005, Sandoz expanded significantly though the acquisition of Hexal, one of Germany's leading generic drug
Generic drug
A generic drug is a drug defined as "a drug product that is comparable to brand/reference listed drug product in dosage form, strength, route of administration, quality and performance characteristics, and intended use." It has also been defined as a term referring to any drug marketed under its...
companies, and Eon Labs, a fast-growing United States generic pharmaceutical company.
"Sandoz" continues to be used as a Novartis generic drug brand (see below for details).
After the merger
Ciba Specialty Chemicals
Ciba was a chemical company based in and near Basel, Switzerland. "Ciba" stood for "Chemische Industrie Basel" . It was formed as the non-pharmaceuticals elements of Novartis were spun out in 1997, following the merger in the previous year of Ciba-Geigy and Sandoz that created Novartis.In 2008,...
(now a part of BASF
BASF
BASF SE is the largest chemical company in the world and is headquartered in Germany. BASF originally stood for Badische Anilin- und Soda-Fabrik . Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock...
).
In 1998, the company made headlines with its biotechnology
Biotechnology
Biotechnology is a field of applied biology that involves the use of living organisms and bioprocesses in engineering, technology, medicine and other fields requiring bioproducts. Biotechnology also utilizes these products for manufacturing purpose...
licensing agreement with the University of California at Berkeley Department of Plant and Microbial Biology
Biology
Biology is a natural science concerned with the study of life and living organisms, including their structure, function, growth, origin, evolution, distribution, and taxonomy. Biology is a vast subject containing many subdivisions, topics, and disciplines...
. Critics of the agreement expressed concern over prospects that the agreement would diminish academic objectivity, or lead to the commercialization of genetically modified plants. The agreement expired in 2003.
Novartis combined its agricultural division with that of AstraZeneca
AstraZeneca
AstraZeneca plc is a global pharmaceutical and biologics company headquartered in London, United Kingdom. It is the world's seventh-largest pharmaceutical company measured by revenues and has operations in over 100 countries...
to create, Syngenta
Syngenta
Syngenta AG is a large global Swiss agribusiness company which notably markets seeds and pesticides. Syngenta is involved in biotechnology and genomic research. The company is a leader in crop protection, and ranks third in total sales in the commercial agricultural seeds market. Sales in 2010 were...
, in November 2000.
In 2003, Novartis created a subsidiary that bundles its generic drug production, reusing the predecessor brand name of Sandoz.
In 2005, Novartis introduced Certican (Everolimus
Everolimus
Everolimus is the 40-O- derivative of sirolimus and works similarly to sirolimus as an mTOR inhibitor....
), an immunosuppressant, and in October 2006 began marketing Telbivudine
Telbivudine
Telbivudine is an antiviral drug used in the treatment of hepatitis B infection. It is marketed by Swiss pharmaceutical company Novartis under the trade names Sebivo and Tyzeka...
, a new antiviral drug for hepatitis B.
On 20 April 2006, Novartis acquired the California-based Chiron Corporation
Chiron Corporation
Chiron Corporation was a multinational biotechnology firm based in Emeryville, California that was acquired by Novartis International AG on April 20, 2006. It had offices and facilities in eighteen countries on five continents. Chiron's business and research was in three main areas:...
. Chiron formerly was divided into three units: Chiron Vaccines, Chiron Blood Testing, and Chiron BioPharmaceuticals, to be integrated into Novartis Pharmaceuticals. Chiron Vaccines and Chiron Blood Testing now are combined to form Novartis Vaccines and Diagnostics.
The ongoing Basel Campus Project has the aim to transform the St. Johann site - Novartis headquarters in Basel - "from an industrial complex to a place of innovation, knowledge, and encounter".
On 12 October 2009, Novartis has entered into an agreement for exclusive US and Canadian rights to Fanapt(iloperidone), a new oral medication that is approved by the U.S. Food and Drug Administration
Food and Drug Administration
The Food and Drug Administration is an agency of the United States Department of Health and Human Services, one of the United States federal executive departments...
(FDA) for the acute treatment of adults with schizophrenia.
On 6 November 2009, Novartis reached an agreement to acquire an 85% stake in the Chinese vaccines company Zhejiang Tianyuan Bio-Pharmaceutical Co., Ltd. as part of a strategic initiative to build a vaccines industry leader in this country and expand the Group's limited presence in this fast-growing market segment. This proposed acquisition will require government and regulatory approvals in China.
On 4 January 2010, Novartis offered to pay US $39.3 billion to fully acquire Alcon
Alcon
Alcon incorporated and with corporate headquarters, in Hünenberg, Switzerland, is a global medical company specializing in eye care products. Alcon's U.S. headquarters is located in Fort Worth, Texas...
, the world's largest eye-care company, including a majority stake held by Nestlé
Nestlé
Nestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
. Novartis had bought 25% of Alcon in 2008.
On 11 March 2010, Novartis settled their patent suit in the US District Court for the District of New Jersey with IntelliPharmaCeutics International, Ltd.
IntelliPharmaCeutics
IntelliPharmaCeutics is a Canadian specialty pharmaceutical company, operating internationally and primarily engaged in the research, development, and commercialization of controlled-release and targeted pharmaceutical products.-Focalin XR:...
, a Canada-based specialty pharmaceutical company, and its licensee Par Pharmaceutical Inc. over a generic version of the attention deficit hyperactivity disorder drug Focalin XR (dexmethylphenidate hydrochloride).
Basel headquarters campus redesign
An ongoing Basel Campus Project has the aim to transform the Saint Johann site—Novartis headquarters in Basel—"from an industrial complex to a place of innovation, knowledge, and encounter". The pharmaceutical giant decided to transform the existing Sandoz office buildings and chemical factories of its headquarters in 2001.The buildings gradually were demolished and replaced with works by architects and artists of international stature. Frank Gehry
Frank Gehry
Frank Owen Gehry, is a Canadian American Pritzker Prize-winning architect based in Los Angeles, California.His buildings, including his private residence, have become tourist attractions...
, Rafael Moneo
Rafael Moneo
José Rafael Moneo Vallés is a Spanish architect. He was born in Tudela, Spain, and won the Pritzker Prize for architecture in 1996. He studied at the ETSAM, Technical University of Madrid from which he received his architectural degree in 1961. From 1958 to 1961 he worked in the office in Madrid...
, and from SANAA, Kazuyo Sejima
Kazuyo Sejima
is a Japanese architect. After studying at Japan Women's University and working in the office of Toyo Ito, in 1987 she founded Kazuyo Sejima and Associates. In 1995 she founded the Tokyo-based firm SANAA together with her former employee Ryue Nishizawa...
and Ryue Nishizawa
Ryue Nishizawa
is an Japanese architect based in Tokyo. He is a graduate of Yokohama National University, and is director of his own firm, Office of Ryue Nishizawa, established in 1997. In 1995, he co-founded the firm SANAA with the architect Kazuyo Sejima...
were among the architects and Jenny Holzer
Jenny Holzer
Jenny Holzer is an American conceptual artist. Holzer lives and works in Hoosick Falls, New York.-Education:...
and Richard Serra
Richard Serra
Richard Serra is an American minimalist sculptor and video artist known for working with large-scale assemblies of sheet metal. Serra was involved in the Process Art Movement.-Early life and education:...
among the artists. Marked diversity of forms now dominates the campus. Novel features and technologies were introduced by Gehry to conform to the building standards of the Swiss government that prohibit air-conditioning, while still selecting a contemporary style of massive use of glass exteriors. One adaptation by the architect includes the integration of a building vent, teepee-style, through the roof, which creates a chimney effect that draws cool air in at the lower levels and vents warmer air.
Pharmaceuticals
- Afinitor- Organ transplants and cancers
- Comtan- $420 M (2007)- Parkinson's diseaseParkinson's diseaseParkinson's disease is a degenerative disorder of the central nervous system...
- Diovan- $5.0 B sales (2007)- HypertensionHypertensionHypertension or high blood pressure is a cardiac chronic medical condition in which the systemic arterial blood pressure is elevated. What that means is that the heart is having to work harder than it should to pump the blood around the body. Blood pressure involves two measurements, systolic and...
- Exjade- $357 M (2007) - IronIronIron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
chelatorChelation therapyChelation therapy is the administration of chelating agents to remove heavy metals from the body. For the most common forms of heavy metal intoxication—those involving lead, arsenic or mercury—the standard of care in the United States dictates the use of dimercaptosuccinic acid... - Femara- $937 M (2007)- Breast cancerBreast cancerBreast cancer is cancer originating from breast tissue, most commonly from the inner lining of milk ducts or the lobules that supply the ducts with milk. Cancers originating from ducts are known as ductal carcinomas; those originating from lobules are known as lobular carcinomas...
- Focalin- - AD/HD
- Gleevec- $3.1 B- for Chronic myeloid leukemia
- Lescol- $665 M (2007)- hypercholesterolemiaHypercholesterolemiaHypercholesterolemia is the presence of high levels of cholesterol in the blood. It is not a disease but a metabolic derangement that can be caused by many diseases, notably cardiovascular disease...
- LotrelLotrelAmlodipine/benazepril, marketed in the U.S. as Lotrel by Novartis and manufactured as a generic drug by Teva and Sandoz, is an antihypertensive medication which combines a calcium channel blocker with an angiotensin converting enzyme inhibitor...
- $748 M (2007)- HypertensionHypertensionHypertension or high blood pressure is a cardiac chronic medical condition in which the systemic arterial blood pressure is elevated. What that means is that the heart is having to work harder than it should to pump the blood around the body. Blood pressure involves two measurements, systolic and... - Lucentis- $393 M (2007)- Age-related macular degenerationMacular degenerationAge-related macular degeneration is a medical condition which usually affects older adults and results in a loss of vision in the center of the visual field because of damage to the retina. It occurs in “dry” and “wet” forms. It is a major cause of blindness and visual impairment in older adults...
- Ritalin- $375 M (2007) - AD/HD
- ExelonRivastigmineRivastigmine is a parasympathomimetic or cholinergic agent for the treatment of mild to moderate dementia of the Alzheimer’s type and dementia due to Parkinson's disease. The drug can be administered orally or via a transdermal patch; the latter form reduces the prevalence of side effects, which...
- $632 M (2007)- Alzheimer's diseaseAlzheimer's diseaseAlzheimer's disease also known in medical literature as Alzheimer disease is the most common form of dementia. There is no cure for the disease, which worsens as it progresses, and eventually leads to death... - Sandimmune and Neoral- $944 M (2007)- Organ transplantation
- Sandostatin - $1.0 B (2007) - AcromegalyAcromegalyAcromegaly is a syndrome that results when the anterior pituitary gland produces excess growth hormone after epiphyseal plate closure at puberty...
- Tasigna- Chronic myelogenous leukemia
- Tegretol- $413 M (2007)- EpilepsyEpilepsyEpilepsy is a common chronic neurological disorder characterized by seizures. These seizures are transient signs and/or symptoms of abnormal, excessive or hypersynchronous neuronal activity in the brain.About 50 million people worldwide have epilepsy, and nearly two out of every three new cases...
- Termalgin - (ParacetamolParacetamolParacetamol INN , or acetaminophen USAN , is a widely used over-the-counter analgesic and antipyretic . It is commonly used for the relief of headaches and other minor aches and pains and is a major ingredient in numerous cold and flu remedies...
and compounds.) - Treatment of fever and light pain. - Tobramycin- $273 M (2007)- Cystic fibrosisCystic fibrosisCystic fibrosis is a recessive genetic disease affecting most critically the lungs, and also the pancreas, liver, and intestine...
- Trileptal- $692 M (2007)- EpilepsyEpilepsyEpilepsy is a common chronic neurological disorder characterized by seizures. These seizures are transient signs and/or symptoms of abnormal, excessive or hypersynchronous neuronal activity in the brain.About 50 million people worldwide have epilepsy, and nearly two out of every three new cases...
- Voltaren- $747 M (2007)- anti-inflammatoryAnti-inflammatoryAnti-inflammatory refers to the property of a substance or treatment that reduces inflammation. Anti-inflammatory drugs make up about half of analgesics, remedying pain by reducing inflammation as opposed to opioids, which affect the central nervous system....
- Zometa- $1.3 B (2007)- Cancer complications
- Tofranil- - antidepressantAntidepressantAn antidepressant is a psychiatric medication used to alleviate mood disorders, such as major depression and dysthymia and anxiety disorders such as social anxiety disorder. According to Gelder, Mayou &*Geddes people with a depressive illness will experience a therapeutic effect to their mood;...
Consumer health (OTC)
- Benefiber
- Buckley'sBuckley'sW.K. Buckley Limited is a Canadian corporation founded in 1920, by W.K. Buckley, that manufactures medicines for health problems such as the common cold. They also have children's medicine which are sold under the brand Jack & Jill. The company is located in Mississauga, Ontario.In 1978, after W.K....
cold and cough formula - Bufferin
- Comtrex cold and cough
- Denavir/Vectavir
- DesenexMiconazoleMiconazole is an imidazole antifungal agent, developed by Janssen Pharmaceutica, commonly applied topically to the skin or to mucus membranes to cure fungal infections. It works by inhibiting the synthesis of ergosterol, a critical component of fungal cell membranes...
- Doan's pain relief
- Ex-Lax
- ExcedrinExcedrinExcedrin is an over-the-counter headache pain reliever, typically in the form of tablets or caplets. It contains acetaminophen , aspirin, and caffeine. Until late 2005 it was manufactured by Bristol-Myers Squibb, but in July 2005 it was purchased by Novartis, along with other products from BMS's...
- Fenistil
- Gas-X
- Habitrol
- KeriKeriKeri is a Hebrew term which literally means "happenstance", "frivolity" or "contrariness" and has come to mean "seminal emission". The term is generally used in Jewish law to refer specifically to the regulations and rituals concerning the emission of semen, whether by nocturnal emission, or by...
skin care - Lamisil foot care
- Lipactin Herpes symptomatic treatment
- MaaloxMaaloxMaalox is a brand name antacid containing aluminium hydroxide and magnesium hydroxide to neutralize or reduce stomach acid.Maalox helps relieve symptoms of excessive stomach acidity in patients with indigestion, heartburn, gastroesophageal reflux disease, or stomach or duodenal ulcers. In large...
- NicotinellNicotine replacement therapyNicotine replacement therapy is the remedial administration of nicotine to the body by means other than tobacco, usually as part of smoking cessation. Common forms of nicotine replacement therapy are nicotine patches and nicotine gum...
- No-doz
- OtrivineXylometazolineXylometazoline is a drug which is used as a topical nasal decongestant. It is applied directly into the nose, either as a spray or as drops....
- Prevacid 24HRLansoprazoleLansoprazole is a proton-pump inhibitor which prevents the stomach from producing gastric acid. It is manufactured by a number of companies worldwide under several brand names . It was first approved by the U.S...
- Tavist
- TherafluTherafluTheraflu is a brand of over-the-counter cold and flu medicines from Novartis that contain different groupings of various cold and flu symptom medications. The original version of Theraflu contained Acetaminophen , Chlorpheniramine maleate , Dextromethorphan hydrobromide , and Pseudoephedrine...
- Triaminic
- VagistatTioconazoleTioconazole is an antifungal medication of the imidazole class used to treat infections caused by a fungus or yeast. It is marketed under the brand names. Tioconazole ointments serve to treat women's vaginal yeast infections...
- VoltarenDiclofenacDiclofenac is a non-steroidal anti-inflammatory drug taken to reduce inflammation and as an analgesic reducing pain in certain conditions....
In January 2009, the United States Department of Health and Human Services
United States Department of Health and Human Services
The United States Department of Health and Human Services is a Cabinet department of the United States government with the goal of protecting the health of all Americans and providing essential human services. Its motto is "Improving the health, safety, and well-being of America"...
awarded Novartis a $486 million contract for construction of the first U.S. plant to produce cell-based influenza vaccine, to be located in Holly Springs, North Carolina
Holly Springs, North Carolina
Holly Springs is a town in Wake County, North Carolina, United States. As of 2009, the town population was estimated at 21,749, and it had gained the title of"The fastest growing town in North Carolina".-Geography:...
. The stated goal of this program is the capability of producing 150,000,000 doses of pandemic vaccine within six months of declaring a flu pandemic.
Animal health
Pet Care- Interceptor (Milbemycin oximeMilbemycin oximeMilbemycin oxime is a veterinary drug from the group of milbemycins, used as a broad spectrum antiparasitic. It is active against worms , insects and mites ....
), oral worm control product - Sentinel Flavor TabsSentinel Flavor TabsThe combination milbemycin oxime/lufenuron is a parasite control drug in which the active ingredient, milbemycin oxime, eliminates fleas and worms, while a second active ingredient, lufenuron, arrests the development of eggs and larvae, preventing them from maturing and continuing the infestation...
(Milbemycin oxime, LufenuronLufenuronLufenuron is the active ingredient in the veterinary flea control medication Program, and one of the active ingredients in the veterinary flea control, heartworm prevention, and anthelmintic medicine milbemycin oxime/lufenuron .Lufenuron is stored in the animal's body fat and transferred to adult...
), oral flea control product - Deramaxx (DeracoxibDeracoxibDeracoxib is a non-steroidal anti-inflammatory drug of the coxib class, used in veterinary medicine to treat osteoarthritis in dogs. It is sold in tablets, which have added beefy flavor to increase palatability...
), oral treatment for pain and inflammation from osteoarthritis in dogs - Capstar (NitenpyramNitenpyramNitenpyram is an insecticide used in agriculture and veterinary medicine to kill insect external parasites of livestock and pets.In veterinary medicine, it is used orally with dogs and cats to control fleas . After ingestion, it begins killing fleas within 30 minutes and kills every adult flea on...
), oral tablet for flea control - Milbemax (Milbemycin oximeMilbemycin oximeMilbemycin oxime is a veterinary drug from the group of milbemycins, used as a broad spectrum antiparasitic. It is active against worms , insects and mites ....
, PraziquantelPraziquantelPraziquantel is an anthelmintic effective against flatworms. Praziquantel is not licensed for use in humans in the UK; it is, however, available as a veterinary anthelmintic, and is available for use in humans on a named-patient basis....
), oral worm treatment - Program (LufenuronLufenuronLufenuron is the active ingredient in the veterinary flea control medication Program, and one of the active ingredients in the veterinary flea control, heartworm prevention, and anthelmintic medicine milbemycin oxime/lufenuron .Lufenuron is stored in the animal's body fat and transferred to adult...
), oral tablet for flea control
Livestock
- Acatalk Duostar (Fluazuron, Ivermectin), tick control for cattle
- CLiK (Dicyclanil), blowfly control for sheep
- Denagard (Tiamulin)
- Fasinex (Triclabendazole)
- ViraShield
Bioprotection (insect and rodent control)
- Actara (Thiamenthoxam)
- Atrazine (AtrazineAtrazineAtrazine, 2-chloro-4--6--s-triazine, an organic compound consisting of an s-triazine-ring is a widely used herbicide. Its use is controversial due to widespread contamination in drinking water and its associations with birth defects and menstrual problems when consumed by humans at concentrations...
) - Larvadex (CyromazineCyromazineCyromazine is a triazine insect growth regulator used as an insecticide and an acaricide. It is a cyclopropyl derivative of melamine. Cyromazine works by affecting the nervous system of the immature larval stages of certain insects....
) - Neporex (CyromazineCyromazineCyromazine is a triazine insect growth regulator used as an insecticide and an acaricide. It is a cyclopropyl derivative of melamine. Cyromazine works by affecting the nervous system of the immature larval stages of certain insects....
) - Oxyfly (Lambda-cyhalothrin))
- Virusnip (Potassium monopersulfate)
Research and development
The major bases for R&D are BaselBasel
Basel or Basle In the national languages of Switzerland the city is also known as Bâle , Basilea and Basilea is Switzerland's third most populous city with about 166,000 inhabitants. Located where the Swiss, French and German borders meet, Basel also has suburbs in France and Germany...
(Switzerland), Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
(China), and Cambridge
Cambridge, Massachusetts
Cambridge is a city in Middlesex County, Massachusetts, United States, in the Greater Boston area. It was named in honor of the University of Cambridge in England, an important center of the Puritan theology embraced by the town's founders. Cambridge is home to two of the world's most prominent...
(USA). Operations in China are set for rapid expansion within the next five years.
Major therapeutic areas are autoimmunity/transplantation/inflammatory disease, cardiovascular disease, diabetes, gastrointestinal disease, infectious diseases, musculoskeletal disease, neuroscience, oncology, ophthalmology, and respiratory diseases.
Challenge to India's patent laws
In 2006, Novartis launched a court case against IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
seeking to prohibit the country from developing generic drug
Generic drug
A generic drug is a drug defined as "a drug product that is comparable to brand/reference listed drug product in dosage form, strength, route of administration, quality and performance characteristics, and intended use." It has also been defined as a term referring to any drug marketed under its...
s based on patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....
ed medicine
Medicine
Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness....
s. Novartis had challenged a law that allows India to refuse to recognize a patent for an existing medicine if there is a modified formula resulting in a re-patent of the drug. Oxfam
Oxfam
Oxfam is an international confederation of 15 organizations working in 98 countries worldwide to find lasting solutions to poverty and related injustice around the world. In all Oxfam’s actions, the ultimate goal is to enable people to exercise their rights and manage their own lives...
claimed that "If Novartis wins millions of people living in poverty world wide could be deprived of affordable medicines". Oxfam
Oxfam
Oxfam is an international confederation of 15 organizations working in 98 countries worldwide to find lasting solutions to poverty and related injustice around the world. In all Oxfam’s actions, the ultimate goal is to enable people to exercise their rights and manage their own lives...
along with FairPensions
FairPensions
FairPensions is a registered charity that promotes responsible investment bypension schemes and fund managers. It is based in London, United Kingdom....
asked institutional investors to use their shareholder rights to put pressure on Novartis to drop its appeal. On August 5, 2007, an Indian court in Chennai
Chennai
Chennai , formerly known as Madras or Madarasapatinam , is the capital city of the Indian state of Tamil Nadu, located on the Coromandel Coast off the Bay of Bengal. Chennai is the fourth most populous metropolitan area and the sixth most populous city in India...
ruled against Novartis saying that, "Novartis' legal challenge - mounted to limit competition to its own patented medicines - was a threat to people suffering from cancer
Cancer
Cancer , known medically as a malignant neoplasm, is a large group of different diseases, all involving unregulated cell growth. In cancer, cells divide and grow uncontrollably, forming malignant tumors, and invade nearby parts of the body. The cancer may also spread to more distant parts of the...
, HIV
HIV
Human immunodeficiency virus is a lentivirus that causes acquired immunodeficiency syndrome , a condition in humans in which progressive failure of the immune system allows life-threatening opportunistic infections and cancers to thrive...
and AIDS
AIDS
Acquired immune deficiency syndrome or acquired immunodeficiency syndrome is a disease of the human immune system caused by the human immunodeficiency virus...
, diabetes and other diseases who are too poor to pay for them." The high court also claimed to have no jurisdiction on whether Indian Patent law complied with WTO patent guidelines.
In the months leading up to the hearing, more than half a million people wrote to the CEO of Novartis expressing their opposition to the suit. However, Novartis decided to appeal the ruling and sought the Supreme Court's intervention in the matter.
Advertising practices
In September 2008, the U.S. Food and Drug AdministrationFood and Drug Administration
The Food and Drug Administration is an agency of the United States Department of Health and Human Services, one of the United States federal executive departments...
(FDA) sent a notice to Novartis Pharmaceuticals regarding its advertising of Focalin XR, an ADHD drug, in which the company overstated its efficacy while marketing to the public and medical professionals.
'No' to free flu vaccines
In June 2009, Novartis declined to provide free vaccines to the poor in order to counter a current flu epidemic, saying developing nations or donor nations should cover the costs. Daniel Vasella, Novartis chief executive, told the Financial TimesFinancial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
that he would consider offering discounted pricing to low-income nations, but unlike GlaxoSmithKline
GlaxoSmithKline
GlaxoSmithKline plc is a global pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom...
, would not offer vaccines for free.
Sexual discrimination
On May 17, 2010, a jury in the United States District Court for the Southern District of New York awarded $3,367,250 in compensatory damages against Novartis, finding that the company had committed sexual discrimination against twelve female sales representatives and entry-level managersManagement
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
since 2002, in matters of pay, promotion, and treatment after learning that the employees were pregnant
Pregnancy
Pregnancy refers to the fertilization and development of one or more offspring, known as a fetus or embryo, in a woman's uterus. In a pregnancy, there can be multiple gestations, as in the case of twins or triplets...
. Two days later (the trial was bifurcated so that the punitive damages verdict was argued and deliberated separately), the jury awarded punitive damages
Punitive damages
Punitive damages or exemplary damages are damages intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit...
in the amount of $250 million, representing about 2% of Novartis' gross revenues for 2009. Normally punitive damages would be reduced to less than a 10-1 ratio, but the trial was for a group of named plaintiffs in a class action
Class action
In law, a class action, a class suit, or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued...
, who were representing a class of 5,600 class members. The jury was instructed to award compensatory damages just to the named plaintiffs, but to award punitive damages to the entire class. Once the court makes findings on compensatory damages for the remaining class members (which are estimated by plaintiffs' counsel at just under $1 billion), the $250 million is expected to satisfy the Supreme Court's single-digit ratio test for proportionality of compensatory to punitive damages.