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Value Chain Analysis Case Study

Case Title:

Novartis' Generic Drug Business: The New Growth Driver

Publication Year : 2005

Authors: Shalini, Sumit Kumar Chaudhuri

Industry: Health Care


Case Code: VCA0011

Teaching Note: Not Available

Structured Assignment: Not Available

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In 2003, to lay more emphasis on its generics business, Novartis rebranded its entire generics product lines under the Sandoz brand, the brand that had merged with Ciba-Geigy to form Novartis in 1996. In February 2005, Novartis acquired Germany-based generic drugs company, Hexal, and its affiliate, Eon Labs, for enhancing its capability to grab a 10% market share in the US$100 billion global generics market by 2010

Pedagogical Objectives:

  • To highlight the growth strategies of Novartis in the generics business
  • To discuss the strategies adopted by Novartis to face the twin challenges of low prices and high competition in the global generic drug industry.

Keywords : Novartis; Sandoz; Generics; Strategy; Branded drugs; Patent; Generics market; Growth Strategies Case Study; Pharmaceutical industry; USA; Germany; Growth; Eon; Hexal; Sabex


  • The Generic Drug Business of Novartis
  • Novartis' Strategy to be a Leader in Generics Market
  • The Payoffs

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