The CEO of Novartis said on Wednesday that the Swiss pharmaceutical giant does not plan to participate in the “hype” surrounding weight-loss drugs, but would rather focus on areas where it can build a “unique position.”
Vas Narasimhan told CNBC that the company is researching treatments that address the side effects of weight loss, but does not plan to compete directly with leading obesity drug makers. Novo Nordisk And Eli Lilly.
“I think simply following the hype now would not be the right move for Novartis,” he told CNBC's “Squawk Box Europe.”
“In the obesity space, we currently have two very established major players and I think future market entrants will have to find something new, a new approach that either relieves the nausea and vomiting or gives patients the opportunity to lose weight and maintain their muscle,” he said, pointing to ongoing work by Novartis research laboratories in these areas.
Competition for anti-obesity drugs has increased in recent months, with major players such as Roche And Pfizer The market is expected to reach a value of up to $200 billion over the next decade.
However, Narasimhan said his company is targeting areas “where we know we can succeed,” including treating diseases such as Alzheimer's, Huntington's and Parkinson's, as well as various cancer therapies.
He sees significant market opportunities in particular in the growing field of radioligand therapies (RLTs), a cancer treatment that targets cancer cells. So far, the company has made two acquisitions in this area and launched two drugs.
“We believe that over time we can build a $20 billion-plus business in this space and hopefully establish a unique position for ourselves rather than chasing other markets,” he said.
“These are places where I think we have the right to win,” he added.
His comments come after the company received approval from the U.S. Food and Drug Administration on Tuesday for its metastatic breast cancer drug Kisqali to treat patients in earlier stages of the disease.
Novartis After a brief upswing at the opening of the session, shares had fallen 0.3 percent by 9:30 a.m. London time on Wednesday.
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