The CEO of Novartis stated on Wednesday that the Swiss pharmaceutical company has no intention of joining the competitive market of weight loss drugs. Instead, the focus is on establishing a distinctive position in other areas. Vas Narasimhan, in an interview with CNBC, mentioned that the company is exploring treatments for the side effects of weight loss but does not plan to directly challenge leading obesity drug manufacturers like Novo Nordisk and Eli Lilly.
Narasimhan expressed that following the current frenzy in the weight loss market would not be the right strategy for Novartis. He emphasized the need for a unique approach to address challenges in obesity, such as reducing side effects like nausea and vomiting or enabling patients to lose weight while maintaining muscle mass. Novartis is actively researching in these areas within its labs.
Competition in the obesity drug sector has intensified recently, with companies like Roche and Pfizer entering the market, which is projected to reach a value of up to $200 billion in the next decade. However, Narasimhan emphasized that Novartis is focusing on areas where they believe they can excel, such as treatments for Alzheimer’s, Huntington’s, Parkinson’s, and various cancer therapies.
He highlighted the potential of radioligand therapies (RLTs) in cancer treatment as a significant market opportunity for Novartis. The company has already acquired two businesses and introduced two medicines in this field. Narasimhan aims to establish a substantial business worth over $20 billion in RLTs and create a unique position rather than pursuing other markets.
The CEO’s remarks followed the FDA’s approval on Tuesday for Novartis’ Kisqali metastatic breast cancer drug to be used in treating patients with earlier stages of the disease. Novartis shares experienced a slight decline of 0.3% by 9:30 a.m. London time on Wednesday, following a brief increase at the start of the trading session.
