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Novartis CEO Refutes Recent Report Of Weighing Options For Ophthalmology, Respiratory Units – Novartis (NYSE:NVS)

Novartis CEO Refutes Recent Report Of Weighing Options For Ophthalmology, Respiratory Units - Novartis (NYSE:NVS)

  • Novartis AG NVS said it would narrow its focus on five core therapeutic areas, including cardiovascular, immunology, neurodegenerative diseases, solid tumors, and hematology.
  • But that doesn’t mean the Swiss pharma will leave respiratory and ophthalmology altogether, CEO Vas Narasimhan said during the JP Morgan conference.
  • “We have no intention of despite what that Bloomberg article said. I mean, we’re very committed to Xolair. Xolair is a very attractive medicine. We’re committed to our in-line ophthalmology brands. But of course, we’re – from a relative prioritization, I mean these are just less resourced. I mean, our focus is on those big five therapeutic areas.”
  • The company recently adopted a new organizational model in a restructuring. The pharma giant also laid out a plan to spin off the generics unit Sandoz to focus on novel drugs.
  • While noncore assets may not get much attention in Novartis’ overall business, “if something were to be a significant breakthrough […] we could build back up,” Narasimhan said, noting its company’s gene therapy candidate for the macular degeneration disease geographic atrophy. 
  • In September, Novartis revealed insights into the updated company strategy, with the ‘US-first’ mindset, increasing the share of U.S. patients in clinical trials and building capability and talent, among other actions.
  • Price Action: NVS shares are up 0.42% at $90.33 on the last check Tuesday.

Written by biedex markets