Novartis CEO: ‘Europe lags behind’ on innovation

Novartis: 'Europe lags behind, priority to US investments' Keystone-SDA

Novartis CEO Vasant Narasimhan told Bloomberg in an interview that he sees clear differences between Europe and the US in the Swiss pharmaceutical giant's investment strategy.

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The investment environment outside Europe is currently “much more favourable”, Narasimhan said in the interview with Bloomberg on the sidelines of the World Economic Forum in Davos.

The statement comes against a backdrop of renewed geopolitical uncertainties and trade tensions, challenges that are particularly relevant for an industry with innovation cycles in excess of ten years. Although these “instabilities” should not be underestimated, according to Narasimhan they do not undermine Novartis’ business model.

It is counterproductive to adopt a reactionary behaviour to events now, the executive argued. Novartis’ strategy remains to pursue innovation and seek acquisitions to strengthen its portfolio, while maintaining a “very active profile in the transaction market”, as it did last year.

The most direct criticism, however, is reserved for Europe. “It seems that Europe prefers to cling to old industries and subsidies, for example in agriculture, rather than focus on innovative technologies,” noted the American manager with Indian roots. This is why Novartis plans to expand investments mainly in the US, calling the American approach more future-oriented.

Translated from Italian by AI/jdp

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