Novartis: First-Class Pharmaceuticals

Biotechnology and pharmaceuticals company has an excellent reputation

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Aug 19, 2016
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Novartis (NVS, Financial) is a biotechnology and pharmaceuticals company with an excellent reputation for developing first-class pharmaceuticals.

Founded in 1996, the company develops a huge arrangement of products from generic drugs, over-the-counter drugs, diagnostics, contact lenses, animal health, vaccines and the list goes on. The company's headquarters, like competitor Roche, is found in Basel, Switzerland. Reported total assets as of 2015 were at $131.55 billion.

Rapid expansion

Novartis has three well-developed, rapidly expanding research centers in Basel, Shanghai and Boston. Increased revenues in each of these regions has helped propel the company as one of the best biotech investment opportunities of the last several quarters. Since the company has come into the field, Novartis has created for itself a superb portfolio of fast-growing medicines, leading the industry with 13 new drugs approved between 2000 and 2004.

On top of the 13 current drugs, Novartis also has seven drugs in current registration. Known as both the world's second-largest maker of generic drugs and the world's second-largest biotechnology company, Novartis is known as a market leader in reference to sales. Most of the analysis from tech investor news outlets has shown a supportive outlook for the stock into next year.

Potential negatives

While known positively for these things, the company also has created a bad side for its name as well, and this has created some cautionary concerns for money market investors. In one case, Novartis was part of a narrow legal battle between the drug company and the government of India over an expensive cancer drug known as Gleevec in the U.S. Novartis challenged India's denial of patent protection for the drug.

Along with this occurrence, the FDA has also charged the company with unethical advertising practices. In another occurrence, Novartis was charged and fined by U.S. district court of practicing sexual discrimination against 12 female sales reps which further ruined the image of the company.

Perhaps one of the worst cases of political malpractice, Novartis was charged by the U.S. federal prosecutor with paying illegal kickbacks to health care professionals, attacking the name with a glimpse of corruption and perhaps giving the company a certain stigma about its practices.

Disclosure: Author has no position in any company stock mentioned.

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