U.S and Europe are the key
Novartis is divided into two segments: Pharmaceuticals (now called Innovative Medicines), and Sandoz. The Pharmaceuticals segment is responsible for the largest part of the total revenue – over 41 billion U.S. dollars in 2022. From a regional point of view, Novartis generates the overwhelming part of its revenue in the United States and in Europe. In 2022, about 18.5 billion U.S. dollars were generated in Europe and some 17.7 billion dollars in the United States. Among Novartis’ top products are immunomodulating agent Cosentyx and cardiovascular drug Entresto. It is estimated that Novartis reaches nearly 690 million patients worldwide through its products.Research and development
Almost exactly 10 billion U.S. dollars – nearly 20 percent of Novartis’ total revenue – was spent on research and development in 2022. R&D is a major issue for the top pharmaceutical companies because patent expirations can lead to massive revenue losses. Thus, only new medicines with at least a few years of exclusivity can ensure progress and profit. Looking a few years into the future, Piqray, a PI3K alpha inhitor aimed to treat cancer, is estimated to have the largest potential among Novartis' current R&D projects.
