Full-time Employee Breakdown

• The total number of global employees, excluding the R&D department, is 83,738.
• Novartis headquarters in Basel, Switzerland employs a total of 13,000 people, 11,440 of which are full-time employees.
• The Novartis Oncology team includes 3,369 employees. Susanne Schaffert is president of the Oncology department.
• Novartis categorizes full-time employees according to their geographic location and job function. These 5 categories include Marketing and Sales, General and Administration, Novartis Business Services, Production and Supply, and Research and Development (R&D).
• The total number of Marketing and Sales employees worldwide is 42,606. Of these, 5,360 are located in the US, 3,396 in Canada and Latin America, 16,395 in Europe, and 17,455 in Africa, Asia, and Australasia.
• The General and Administration department employs a total of 4,852 people globally. Of these, 763 are located in the US, 397 in Canada and Latin America, 2,666 in Europe, and 1,026 in Africa, Asia, and Australasia.
• The Novartis Business Services team includes 10,063 employees. Of these, 614 are located in the US, 864 in Canada and Latin America, 4,352 in Europe, and 4,233 in Africa, Asia, and Australasia.
• The Production and Supply department employs 26,217 individuals. Of these, 2,830 are located in the US, 838 in Canada and Latin America, 19,386 in Europe, and 3,163 in Africa, Asia, and Australasia.

Functional Organization

•  Functional organizations within the company include Novartis Technical Operations, Novartis Business Services, and Corporate functions.
•  Novartis Technical Operations drives business growth through ongoing optimization of the manufacturing process. The department strives to improve operations by allocating resources effectively.
•  Novartis Business Services provides worldwide support services to the company. This segment drives productivity by standardizing processes, controlling quality, and making services more straightforward.
•  Corporate functions include the Human Resource, finance, communication, and legal departments.

Financial Highlights

• Net sales for the company's oncology business unit grew 10% in 2019.
• Net sales in 2019 were $47.4 billion.
• Operating income in 2019 was $9.1 billion, and core operating income was $14.1 billion.
• Free cash flow was $12.9 billion. This 15% growth was driven by higher operating income.
• Continued sales growth is expected in 2020.

Recent Changes to Organizational Structure

• In 2018, an additional $534 million were made to reorganize the Innovative Medicines Division’s Oncology department. The goal of this reorganization was to improve operational efficiency and streamline processes.
•  AI-based marketing is enabling the Oncology division to optimize brand spending.
• Novartis plans to invest in advanced data and analytic capabilities, thereby transitioning to a value-based commercial model. This model would provide a flexible pricing approach where customers only pay if products meet performance standards.

Research Strategy

Sales and marketing efforts for "launch brands"

•  Mayzent and Piqray are two of the launch brands of Novartis Oncology. They were both launched in 2019. Mayzent got its US FDA approval last March 2019 while Piqray was US FDA-approved in May 2019.
• Mayzent received its European marketing authorization last month, January 2020. This marketing authorization is valid throughout the European Union.
• The type of advertising used for Mayzent currently involves press releases in media sites such as Nasdaq, MedSpace, FiercePharma, and Endpoints News.
• Based on the Novartis company news archive, there are media releases for Mayzent almost every month, once each month in the past year.
• Piqray was advertised through a national television advertisement as well as through social media, digital, print and in-office materials. Piqray is now the latest cancer drug that was advertised through national television.
• There are also press releases for Piqray in media sites such as FiercePharma, PharmaTimes, and PR Newswire.

Sales and marketing efforts for "inline brands"

•  Cosentyx and Gilenya are two of the top inline brands of Novartis Oncology. Cosentyx's net sales in 2019 are $791 million while that of Gilenya are $766 million. Cosentyx's 2019 net sales is a significant increase from its 2018 net sales which is $580 million. However, that of Gilenya decreased. Its 2018 net sales is $821 million.
• Cosentyx and Gilenya are currently advertised mainly through press releases. There are media releases for Cosentyx in news sites such as Nasdaq, PM Live, and Endpoints News. While the press releases for Gilenya are seen in sites such as Multiple Sclerosis News Today, Pharma Forum and FDA.gov.
• In the past year, there are only two media releases for Cosentyx on the Novartis company news archive while Gilenya only has one.

Summary of the differences in marketing efforts

• The type of advertising used for launch brands includes press releases, advertisements on national television, social media, digital, print, in-office materials. While the type of advertising used for inline brands is mainly press releases.
• Based on the company media archive, the press releases for the launch brands have a higher frequency as compared to that of the inline brands.

Research Strategy