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Value Chain Analysis Case Study

Case Title:

Novartis: Globalisation of Pharmaceutical Research

Publication Year : 2005

Authors: Soumitra Das, Sumit Kumar Chaudhuri

Industry: Health Care


Case Code: VCA0010

Teaching Note: Not Available

Structured Assignment: Not Available

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Until 2000-2001, the global pharmaceutical industry used to consider Novartis as a 'sleepy European giant' till it released Glivec, a therapeutic drug that established itself as one of the most successful cancer therapies. By the turn of the 21st century, while major pharma players globally were facing a crisis of patent expiry on key drugs and poor research results, Novartis had 10 new drug launches slated between 2000-2003, three times that of any of its competitors. It had a Strategic Alliances division, which by 2004 had signed over 320 collaborations, out of which 90 collaborations were with biotech companies and 230 with academic centres in 19 countries. Due to its innovative research strategies, Novartis was adjudged by Fortune, as the fourth best pharmaceutical company in the world in 2004.

Pedagogical Objective:

  • To discuss how Novartis, under the leadership of professor Paul Herrling, the head of corporate research, is making efforts to sustain its growth by leveraging on its globalised research strategy

Keywords : Pharmaceutical research; Innovation Management Case Study; Novartis; Blockbuster drugs; Patent expiry on blockbuster drugs; Generic drugs; Collaborative research in global pharmaceutical industry; Strategic alliances of Novartis; Novartis product pipeline


  • Novartis-A Tradition of Research
  • Global Research Strategies of Novartis
  • What Lies Ahead?

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