Buoyant Novartis continues to eye Roche
Thursday , February 12, 2004
Novartis has increased its stake in Roche, stopping just short of the level at which Swiss law would require it to formally launch a takeover bid. Novartis chief executive Daniel Vasella made it clearer than ever that the company wanted to merge with its neighbour, and expressed his exasperation with Roche management for its unwillingness to merge, saying he wanted both sides to work together on a deal. "I don't know why they are so anti (merger). "You will have to ask them," he told The Times. "If you embark on such an endeavour you need both parties to be fully determined to make it a success. Otherwise you can increase the risk dramatically." Novartis, itself the product of a 1996 merger between Sandoz and Ciba-Geigy, spent $120 million last year buying Roche stock and currently holds 33.3% of the company's voting shares. Roche has responded by saying Novartis' latest spending spree changed nothing as far as it was concerned. The company has so far strongly resisted Novartis' overtures, which would create the second biggest pharma company ahead of current number two GlaxoSmithKline. Even without the merger, Novartis is growing fast - in 2003 it rose up the rankings of the industry to become the world's fifth-biggest pharmaceutical company with a global market share of 4.38%. The company was also the fastest growing of the top ten companies according to IMS data, bolstered by strong market share gains in the US, where sales rose 15%, Japan (sales up 14%) and Europe, up 6%. Worldwide, pharma sales rose by 18% to £16 billion, boosting profits by 6% to $5 billion. Chairman and chief executive Daniel Vasella said: "2003 ended on a strong note as our sales grew dynamically, reaching record levels for the eighth time in our eight-year history." The company's top ten products rose collectively by 21% to $4.3 billion, led by its hypertension treatment Diovan, which posted 42% growth to make sales of $1.1 billion. The company, which actually earned just over 40% of its pharmaceutical sales in the US in 2003, reported its annual results entirely in US dollars for the first time. Related Articles: Pipeline promises $10 billion says Novartis Tuesday , November 25, 2003
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