The CEO of Novartis announced on Wednesday that the Swiss pharmaceutical company has no plans to participate in the current surge of weight loss drugs. Instead, the company intends to concentrate on areas where it can establish a “unique position.”
In an interview with CNBC, Vas Narasimhan explained that Novartis is focusing on treatments that address the secondary effects of weight loss. However, the company does not plan to directly compete with leading obesity drug manufacturers, Novo Nordisk and Eli Lilly.
“I think just to follow on the frenzy now would not be the right move for Novartis,” Narasimhan stated during CNBC’s “Squawk Box Europe.”
He further noted that the obesity market currently has two dominant players and emphasized the need for new entrants to offer innovative solutions, such as reducing nausea and vomiting or enabling patients to lose weight while retaining muscle mass. Narasimhan highlighted that Novartis is already conducting research in these areas.
The competition in the obesity drug market has escalated in recent months, with industry giants like Roche and Pfizer entering the field. The market is projected to reach a value of up to $200 billion within the next decade.
Despite this, Narasimhan indicated that Novartis is targeting sectors where the company is confident it can succeed. These include treatments for Alzheimer’s, Huntington’s, Parkinson’s diseases, and various cancer therapies.
He specifically mentioned a substantial market opportunity in the company’s expanding radioligand therapies (RLTs), a cancer treatment targeting cancerous cells. Novartis has completed two acquisitions and launched two medicines in this area.
“That’s an area where we think we could build a $20 billion-plus business over time and hopefully build a unique position rather than chasing the other markets,” Narasimhan stated, adding, “These are places where I feel like we have the right to win.”
His remarks followed the recent approval by the U.S. Food and Drug Administration for Novartis’ Kisqali metastatic breast cancer drug to be used in treating earlier stages of the disease.
As of 9:30 a.m. London time on Wednesday, Novartis shares were down by 0.3%, despite a temporary rise at the session’s start.
