Industry Trend Analysis - Novartis' Return To Oncology Growth Will Be Slow - AUG 2017

BMI View: Novartis will temporarily lose its position in the cancer treatment market as it succumbs to generic competition. The company ' s strong strategy of investing in the portfolio backbone of targeted therapies with a few key immun o -oncology compounds will serve it well as the latter segment becomes overcrowded and used primarily in combination with targeted treatments.

Novartis gave insight into its oncology strategy at its fourth annual Meet Novartis Management event. Novartis' revenues are heavily reliant on oncology; the segment accounted for 39% of the company's Innovative Medicines sales in FY2016, equal to USD12,790mn. This is far larger than any other therapy area for the company, demonstrating the importance of its continued growth.

Pricing Strategies To Negate Market Pressures

Oncology Dominates Revenues
Novartis Innovative Medicine Unit Breakdown (%), 2016
Source: Novartis, BMI

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