CEO Novartis The Swiss drug giant said Wednesday it has no plans to enter the “craze” of weight-loss drugs, preferring instead to focus on areas where it can build a “unique niche.”
Speaking to CNBC, Vas Narasimhan said the company was looking for treatments that address the side effects of weight loss, but it doesn't plan to compete directly with the dominant obesity drugmakers. Novo Nordisk and Eli Lilly.
“I think just going on this frenzy now would not be the right move for Novartis,” he told CNBC’s “Squawk Box Europe.”
“In obesity right now, we have two very established big players, and I think for future entrants, you have to find something new, some kind of new angle that either reduces nausea and vomiting or gives patients the ability to lose weight and retain muscle,” he said, highlighting current work in such areas within Novartis’ research laboratories.
Competition for obesity drugs has intensified in recent months, with major players such as Rosh and Pfizer Entering a market that is expected to be worth up to $200 billion over the next decade.
However, Narasimhan said his company is targeting areas “where we know we can win.” These include treatments for diseases such as Alzheimer’s, Huntington’s and Parkinson’s, as well as various cancer treatments.
In particular, he said he saw a huge market opportunity in the growing field of radioligand-based therapies (RLTs), a cancer treatment that targets cancer cells. So far, the company has made two acquisitions and launched two drugs in this area.
“It's an area where we believe we can build a $20 billion-plus business over time and hopefully build a unique position rather than chasing other markets,” he said.
“These are the places where I feel we have a right to win,” he added.
His comments come after the company on Tuesday won approval from the U.S. Food and Drug Administration for its metastatic breast cancer drug Kisqali for use in patients with early-stage disease.
Novartis Shares were down 0.3% by 9:30 a.m. London time on Wednesday, after a brief rise at the open.
