Summary
Novartis to grow its China presence, late.
Novartis has a slow response to market opportunities.
GlaxoSmithKline and other big pharma players are perhaps too large to compete in the world's changing markets.
Analysis
Novartis International AG has had a minor presence in China for a few years and appears to only now recognize the very real market that is China.
Chairman and CEO Dr Daniel Vasella has had a dismal year publicity wise; saying no to the World Health Organisation for donated medicines and slighting Timbuktu in a recent article. Ultimately Dr. Vasella exhibits a remarkable tin ear to development, both pharma and global.
While we do applaud Novartis' efforts to expand their presence in China, we do wish they had the bold foresight necessary to compete in the world's dynamic emerging markets.
Novartis' R&D efforts in the realm of traditional Chinese medicine,
phytopharmaceuticals, and other nontraditional medicines will indicate the long-term survivability of the company.
Dr. Vasella, along with GlaxoSmithKline CEO Whitty and others, are leading extremely large bureaucracies that will not be able to compete with the likes of Ranbaxy Laboratories, Ltd., Teva Laboratories, or Lupin, Ltd. Regardless of pharma focus, Novartis' poor presence in the world's emerging markets is time lost, and time that can't be regained.
