Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 16 pages
Data source: Published sources
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https://casecent.re/p/19734
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Abstract
The 1996 merger of Sandoz Ltd and Ciba-Geigy Ltd to form Novartis AG, kicked off a new era in the history of the pharmaceutical industry. The merger made Novartis Europe''s largest and the world''s second largest pharmaceutical company. However, Novartis'' initial plans to focus on genetic engineering and agribusiness backfired in 1998 owing to negative results from its R&D testing. As a result, the company then shifted its focus to health care - a more lucrative market. But Novartis could not gain a foothold in the US - the largest drug market - due to weak marketing and sales force. After Daniel Vasella, CEO of Novartis, revamped the company to give it a new organisational structure and direction, the company came to be seen as one among the big five pharmaceutical companies. This case study tries to outline major milestones the company has achieved since its inception. More specifically, the case deals with the organisational changes that the company underwent in order to stay in the big league.
About
Abstract
The 1996 merger of Sandoz Ltd and Ciba-Geigy Ltd to form Novartis AG, kicked off a new era in the history of the pharmaceutical industry. The merger made Novartis Europe''s largest and the world''s second largest pharmaceutical company. However, Novartis'' initial plans to focus on genetic engineering and agribusiness backfired in 1998 owing to negative results from its R&D testing. As a result, the company then shifted its focus to health care - a more lucrative market. But Novartis could not gain a foothold in the US - the largest drug market - due to weak marketing and sales force. After Daniel Vasella, CEO of Novartis, revamped the company to give it a new organisational structure and direction, the company came to be seen as one among the big five pharmaceutical companies. This case study tries to outline major milestones the company has achieved since its inception. More specifically, the case deals with the organisational changes that the company underwent in order to stay in the big league.