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Dec 9, 2010

Forgoing financial gain, Novartis funds research and drug development for neglected diseases in poor countries

• Driven by its mission of improving access to essential medicines, the Swiss healthcare company Novartis is defying conventional business wisdom by funding what is generally considered a non-lucrative undertaking: research and drug development for neglected diseases in poor countries.
• In 2003, Novartis established the Novartis Institute for Tropical Diseases (NITD) to conduct research and early development of treatments against dengue fever, malaria and drug-resistant tuberculosis. All medicines discovered at NITD will be made available at no profit to patients in low-income countries where these diseases are endemic.
• In 2007, Novartis inaugurated the nonprofit Novartis Vaccines Institute for Global Health (NVGH) that initially focuses on diarrheal diseases, one of the biggest killers of children across the developing world. All vaccines developed by NVGH will also be provided at an affordable and accessible price to populations of developing countries.

Driven by its mission of improving access to essential medicines, the Swiss healthcare company Novartis is defying conventional business wisdom by funding what is generally considered a non-lucrative undertaking: research and drug development for neglected diseases in poor countries.

“For commercial reasons, major pharmaceutical companies traditionally devoted little, if any, research activities to major diseases that occur predominantly in underdeveloped countries. Novartis is helping change this conventional business approach in order to provide essential medicines to underprivileged patients in the developing world,” said Ms. Christine F. Liwanag, Corporate Affairs and Market Access Director, Novartis Healthcare Philippines.

Liwanag was one of the resource speakers during a seminar-workshop organized for the media by the Pharmaceutical and Healthcare Association of the Philippines (PHAP) and online magazine Newsbreak on November 11-13, 2010 in Bagac, Bataan. Entitled “What ails health & what can we do about it?” the seminar-workshop focused on developments and issues affecting the health sector, the challenges these present to public health practitioners and health-related industries, and the role of media.

In 2003, Novartis in partnership with the Singapore Economic Development Board established a new research center dedicated to “neglected” diseases that take a heavy toll in the developing world. The Novartis Institute for Tropical Diseases (NITD) focuses on research and early development of treatments against dengue fever, malaria and drug-resistant tuberculosis (TB). All medicines discovered at NITD will be made available at no profit to patients in low-income countries where these diseases are endemic.

To expand the NITD’s research capabilities on these neglected diseases, Novartis recently partnered with scientists and doctors in Indonesia. Known as NEHCRI (NITD–Eijkman Institute–Hasanuddin University Clinical Research Initiative), the research work is located at the Eijkman Institute in Jakarta, Indonesia, and at the Dr. Wahidin Sudirohusodo Hospital in Makassar, Indonesia.

In 2007, Novartis inaugurated a sister research institute for development of vaccines. The Novartis Vaccines Institute for Global Health (NVGH) was the first such initiative with a nonprofit mission established by a major vaccine manufacturer. The initial focus of NVGH is diarrheal diseases, one of the biggest killers of children across the developing world. All vaccines developed by NVGH will also be provided at an affordable and accessible price to populations of developing countries.

Novartis has one of the broadest product portfolios in the pharmaceutical industry. It is the only pharmaceutical company that holds leadership positions in both patented and generic drugs. Thanks to its commercial success, Novartis is able to provide medicines at no profit – or sometimes free – to patients in the developing world. Novartis also offers discounts and support programs to patients without medical insurance or other financial resources in industrialized countries. In 2009 alone, Novartis contributed treatments worth USD 1.5 billion through its various access-to-medicine programs, reaching more than 79 million patients in need.

By providing free donations of its anti-leprosy medications, Novartis has helped cure over 4.5 million patients. In collaboration with the World Health Organization, Novartis has committed to donate 500,000 anti-TB treatments, 50% of which have already been delivered. The Novartis Oncology Access Program has helped over 150,000 Filipino patients gain access to the company’s breakthrough cancer treatment imatinib, with patient benefits valued at more than 3 billion pesos.

“Engaging with society to improve healthcare is integral to how Novartis operates and is important to our success. Novartis is committed to provide patients all over the world, particularly those in need, with access to more effective and safe medicines,” Liwanag said.

About Novartis

Novartis provides healthcare solutions that address the evolving needs of patients and societies. Focused solely on healthcare, Novartis offers a diversified portfolio to best meet these needs: innovative medicines, cost-saving generic pharmaceuticals, preventive vaccines, diagnostic tools and consumer health products. Novartis is the only company with leading positions in these areas. In 2009, the Group’s continuing operations achieved net sales of USD 44.3 billion, while approximately USD 7.5 billion was invested in R&D activities throughout the Group. Headquartered in Basel, Switzerland, Novartis Group companies employ approximately 100,000 full-time-equivalent associates and operate in more than 140 countries around the world. For more information, please visit www.novartis.com.