Novartis invests over 700 million U.S. dollars in China to focus on rural medical and health

On March 9th, Novartis held a "2011 press conference" in Beijing to announce the company's global 2010 performance and share its development status in China.

In 2010, Novartis Group’s net sales increased by 14% to US$50.6 billion, setting a record in the company's history. Operating income increased by 17% to US$11.5 billion; net income increased by 20% to US$9.77 billion. Globally, the Vaccine and Diagnostic Reagents Division and Sandoz (non-patented drugs) have achieved double-digit performance growth, and pharmaceuticals (patent drugs) and consumer health care products also performed well, with growth exceeding the industry average. .

Mr. Yi Jin, President of Novartis China, quoted Mr. Jiang Muzhong, CEO of the company and quoted him as saying: “In 2010, under the support of the three strategic pillars of innovation, growth and production efficiency, Novartis’s performance continued to grow strongly. Major business units were Leading the Industry We are very proud that Novartis continues to lead in innovation and in 2013, 13 new products of Novartis Pharmaceuticals were approved and submitted 16 new drug applications. After the merger with Alcon is approved by shareholders, it is expected that It will be completed in the first half of 2011. This will not only meet the urgent need for eye disease caused by global aging, but will also give Novartis a new business growth platform."

In 2010, thanks to a comprehensive product line layout and continued investment in innovation, sales of Novartis Pharmaceuticals maintained strong growth. Sales in the pharmaceutical sector increased by 7% in US dollars, ahead of the industry average. Among them, new products contributed 21% to net sales, which was higher than 16% in 2009. Sandoz (genuine drug) performance has grown significantly, with an increase of 14% in 2010, becoming the global biopharmaceutical leader; sales of Vaccine & Diagnostic Reagents Division increased by 25% in local currency. Globally, Novartis’ consumer healthcare business also grew faster than the market average, increasing by 6% in local currencies.

While the business continues to grow, Novartis has also been committed to a wide range of global drug availability programs. Through its programs in malaria, tuberculosis and leprosy in Asia, Africa and Latin America, and the Gleevec Global Patient Assistance Program (GIPAP) in the world, Novartis continues to provide support and assistance to patients with the most pressing medical needs. In 2010, Novartis contributed a total of US$1.5 billion (accounting for 3% of its net sales) to fund nearly 85 million patients worldwide.

As one of the important emerging markets that Novartis has always focused on, China’s position in Novartis’ global strategy has increased. As of the end of 2010, Novartis’ cumulative investment in China totaled over US$700 million, a compound growth rate of 47% over 2004. Currently, Novartis has more than 5,000 employees in China, which is a compound annual growth rate of 22% compared to 2004. At the same time as the scale has grown steadily, Novartis has also continued to increase the cultivation of local talents. By the end of 2010, Novartis China University had passed top academic and business institutions at home and abroad such as Peking University, Harvard Business School, Lausanne School of Management and China Europe Business School. And other cooperation, the training of more than 400 employees.

At the same time, Novartis has achieved steady and balanced development in all major business sectors in China.

In 2010, Novartis Pharmaceuticals provided quality services by optimizing its organizational structure, rationally allocating resources, accelerating business decisions, and being closer to the needs of patients and customers. In the field of hypertension and osteoporosis treatment, we continue to maintain our leading position in the industry. Devon® has topped the ARB market and Lotensin® in the ACEI market; it successfully launched the latest generation of antihypertensive drug Dobrate® (valsartan / Amlodipine monolithic compound preparations), and launched the largest clinical observational study of prospective hypertension medicines at home and abroad - the "observation of blood pressure control in the Chinese population" study to explore antihypertensive drugs suitable for Chinese people.

Sandoz's performance in 2010 maintained a steady growth. Among them, Shanning continued to maintain its position as a leader in the somatostatin market, listing a total of eight new products and enriching its existing product portfolio; otc (non-prescription drugs) steadily improved its operating performance in China. In 2010, the sales of Silicone Latex® increased by 14%, continuing to lead the Chinese market for painkilling western medicine for topical use; animal health spreading knowledge in rural areas, effectively supporting “three rural” policies, organizing 1473 educational seminars, and educating more than 50,000 rural households; By establishing an independent business model, it is committed to establishing a one-stop service concept for customers and focusing on the important mission of “product first, professional first, and service first”; the vaccine further strengthens its investment in China for continuous expansion and development. Market demand, make efforts from all aspects of resources and products, among which, Vickers expects to officially land in China in April 2011; Novartis Diagnostics Department cooperates with China Blood Center in the field of blood safety and actively participates in the nucleic acid testing pilot work of the Ministry of Health. The blood center where blood donation is the largest in the year is using Novartis diagnostic products for blood screening; Novartis replenishment of $ 30 million expansion of the R & D Center successfully completed in November 2010 and became the world's Good Manufacturing Practices (GMP) drug substance one supplier.

In 2010, Novartis (China) Biomedical Research Co., Ltd. also achieved rapid development. The number of employees and R&D investment have increased by about 25% compared with 2009, and more R&D functional departments have been introduced. At the same time, the second R&D facility in the Zhangjiang area was launched in 2010 to meet the growing demand for scientific research. For the development of innovative drugs for the high incidence of diseases in the Chinese population, a new drug R&D project portfolio has been initially established, and positive results have been achieved in specific projects.

At the same time, Novartis further fulfilled the concept of "Promise China," and as Novartis's world's largest drug availability project, the Gleevec Global Patient Assistance Program (GIPAP) is further deepened in China. As of the end of December 2010, the GIPAP project has 307 registered medical centers in China and 508 registered doctors covering 31 provinces across the country. The cumulative Gleevec drug value that has been donated to Chinese patients exceeds RMB 7.4 billion, over 14,000. The patient benefited from it; in 2010, the “complex artemether”, a malaria research project that embodies the wisdom and painstaking efforts of Chinese scientists, was awarded the United Nations Development Program (UNDP), the International Chamber of Commerce (ICC) for its contribution to the Millennium Development Goals. The International Business Leaders Forum (IBLF) jointly awarded the "World Business and Development Award" (World Business and Development Award).

As a responsible company, Novartis is also committed to working together to tackle climate change. At the end of 2010, Novartis officially launched the third "Collision-Canceling Carbon Footprint" project in China. The project will complete the planting of about 5 million trees from 2011 to 2014, covering approximately 3,800 hectares of mountainous areas in the southwestern Sichuan Province where vegetation has been destroyed. It is expected that 1.2 million tons of carbon dioxide in the atmosphere will be absorbed in the next 30 years, and it is expected to apply for the "Clean Development Mechanism" project under the UN Framework Convention on Climate Change.

Mr. Yi Jin, President of Novartis China, stated that in the new year, Novartis will continue to intensify its development in China through continuous innovation, actively invest in corporate social responsibility, fulfill its commitment to China, support the further advancement of the Chinese pharmaceutical industry, and improve the Chinese people’s Health level and quality of life.