Our strategy
Our strategy as a focused medicines company is to deliver high-value medicines that alleviate society’s greatest disease burdens through technology leadership in R&D and novel access approaches.
We have made significant progress in transforming Novartis from a diversified healthcare conglomerate into a focused medicines company. In doing so, we have divested or spun off non-core businesses and made targeted acquisitions to focus on our core business: discovering and developing new medicines and finding new ways to deliver them to as many people as possible.
In 2022, we continued to execute on our strategy by putting in place a new organizational structure to support innovation, growth and productivity. We also updated our strategic priorities and announced our intention to spin off our Sandoz Division, which paves the way for Novartis to advance as a company focused fully on innovative medicines.
This page highlights how our strategic priorities address our material impact clusters and link to ESG targets. This ensures our strategy is closely aligned with our goal of long-term value creation.
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Material impact clusters |
Relevant ESG targets |
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Deliver high-value medicines |
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Delivering new medicines is at the core of our purpose and value creation as a company. We focus on innovative medicines with the potential to transform the treatment of diseases across five core therapeutic areas. To do this, we seek to maximize the value of our key in-market and launch medicines, while finding new ways to deliver them to as many people as possible and investing in R&D to deliver the next generation of therapies for patients. As part of our efforts, we continue our longstanding commitment to reduce the burden of infectious and tropical diseases that predominantly affect underserved populations in LMICs. |
Innovation |
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Embed operational excellence |
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We aim to drive efficiency and free up resources to invest in innovation for patients. This also underpins our financial performance and makes us more agile – better able to take quick decisions and scale the use of new technologies – with effective cooperation across our business. In everything we do, we maintain high standards of product quality and patient safety, while also working to reduce our environmental footprint. |
Patient health and safety |
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Strengthen our foundations |
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Unleash the power of our people: |
Access |
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Scale data science and technology: |
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Build trust with society: |
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Transforming and focusing our company
We have evolved from being a diversified healthcare conglomerate to a focused, innovative medicines company. Announced in April 2022, our new organizational structure aligns the way we operate with this strategy.
The changes – part of our Transforming for Growth initiative – are designed to power our next phase of innovation, growth and productivity. We aim to drive shareholder returns by sharpening our focus on our core business, becoming more agile and efficient, and creating the conditions for growth in our priority markets. The new structure became fully operational in January 2023. Please see "Embed operational excellence" for further details.
In August 2022, we also announced plans to spin off 100% of our Sandoz Division, which we expect to be complete by the second half of 2023. The spin-off will create Europe’s leading producer of generics and a global leader in biosimilars and allow us to concentrate fully on our core business. Spinning off Sandoz is in the best interests of our shareholders as it would create two standalone companies focused on their respective growth strategies.
Completion of the transaction is subject to certain conditions, including consultation with works councils and employee representatives (as required), general market conditions, tax rulings and opinions, final Board of Directors endorsement and shareholder approval in line with Swiss corporate law. The transaction is expected to be tax neutral to Novartis.
2023
Sandoz spin-off
We expect the planned spin-off to be completed by the second half of 2023.