Case Study of Novartis Pharma :

The Business Unit Model

By Group 2:

ARYADEEP (23PGBA-04)
DIBYE SINGH (23PGBA-07)
HARJOT SINGH (23PGBA-10)
HIMADRI SHEKHAR (23PGBA-12)
KARUN GABA (23PGBA-35)
MANOJ MISHRA (23PGBA-17)
ONKAR MOHAPATRA (23PGBA-22)
 Overview

01 Introduction 05 Rules of Game

02 New Structure
06 Concerns

03 Industry Context
07 Summary
04 Reason of BU
Introduction of Novartis Pharma
 About Novartis Sales Growth Forecast
 Swiss multinational pharmaceutical corporation based
in Basel, Switzerland.
2000 2001 2003
6.5% 8% 12%
 3rd Largest pharmaceutical company in the world-1999
and 4th Largest by revenue in 2022. Consistently ranked
in the global top five.

 4.4% Market Share , 38% Sales from US

 13% Revenue invested in R&D

 Wide Range of Therapeutic Areas

 Patent Expiry Risk 10% against Industry : 25%

2023
10%
 Structure of Novartis : 5 Business Units
Year 1999
Pure HealthCare Company : Pharma at Core

1 2 3 4 5
Consumer Animal
Pharma Generics CIBA
Health Health
Revenue : 60% Revenue : 22% Revenue : 7% Revenue : 7% Revenue : 4%
Op. Income : 80% Op. Income : 12% Op. Income : 3% Op. Income : 2% Op. Income : 3%

World’s Leading Agro Chemical

2000 : Merger of Agribusiness
Company. Taken over by Chem China in
Division with Astra Zeneca
2017
 New Business Units
Formation
Year 2000
We Aim to follow a Strategy of big and small, where we take advantage of scale and
powerful resources that size brings while at the same time, we establish an innovative
structure that captures the benefits of focus, ownership and creativity.
Danel Vasella [ Chairman & CEO ]

U.S. Basel, SW Bulach, SW Basel Basel

Oncology Transplant Ophthalmology Mature Primary Care

Products

Startup Funding : $50 Mil.

New Unit - “Novartis Bio Venture”

To tap External R&F investment opportunity
5 Phase of Growth

Organizational Practice during Evolution in

Five Phases of Growth