Novartis AG

Leading Practices

• Novartis is active in discover' and early-stage R&D for new therapies for Index Diseases, including five priority Index Communicable diseases and was awarded the Medicine for Malaria (MMV) product of the year award 2009 for its Spirondolone anti-malarial.
• The company has one of the most comprehensive vaccine development programs, covering five communicable Index Diseases.
• Novartis is supporting Index Countries' local capacity for R&D through contributions to academic education programs and R&D collaborations with Index Country institutions.
• The company is among the highest performing companies in adopting innovative approaches to ATM challenges, such as its involvement in the "SMS for Life" initiative which uses mobile phones to report on inventory problems.
• Novartis has adopted innovative approaches to product packaging. Novartis was awarded the Healthcare Compliance in Packaging Council Award in 2009 for Coartem®, which was developed in consultation with Index Country populations.
• Through its subsidiary Sandoz, the company has a strong long-term commitment to single-drug donation programs for leprosy and fascioliasis.

Changes Compared to Index 2008

• Novartis has fulfilled some earlier commitments including the launch of a dispersible anti-malarial (Coartem®) and inauguration of the Novartis Vaccines Institute for Global Health (NVGH) dedicated to vaccine development for the developing world.
• The company has improved the breadth of disclosure of its public policy positions related to ATM in Index Countries.
• It has also provided price concessions acceptable to Thailand's Ministry of Health as an alternative to compulsory licenses issued for Glivec in 2008. 
• Changes have been made to the Glivec donation program (GIPAP), which now has a co-payment-based equitable pricing program. The new approach is a financially sustainable model in contrast to donations.
• A shipment of the generic version of the company's product rivastigmine was seized in Netherland en route to Peru based on EU intellectual property laws. The shipment was detained for 5 months based on company request before being released for delivery.

Suggested Areas for Improvement

• Novartis does not extensively disclose the terms and conditions of its R&D Index Disease collaborations in areas such as pricing for the developed drugs across different geographical regions and supply channels.
• Novartis only uses equitable pricing approaches across a narrow range of countries and products.
• The company is not currently engaged in any non-exclusive voluntary licensing activity in the Index Countries.