Tomahawk, WI 9/05/2013 (BasicsMedia) – Novartis AG (ADR) (NYSE:NVS) is a Swiss multinational company that specializes in providing healthcare solutions. The company specializes in research development manufacturing and marketing of a diverse range of healthcare products. In 2010 it was ranked number two in terms of sales with an estimated sale of $48.806 billion worth of healthcare products among the world wide industry.

Created in 1996 from a merger of Ciba-geigy and Sandoz laboratories, Novartis AG portfolio includes medicines, eye care cost, saving generic pharmaceuticals, diagnostic tools and preventive vaccines. The company is divided into five segments

        I.            Pharmaceuticals: comprising of patent protected prescription medicines ;

      II.            Alcon: includes surgical ophthalmic pharmaceutical and vision care products;

    III.            Sandoz: includes generic pharmaceuticals;

    IV.            Vaccines & diagnostic: includes human vaccines and blood testing diagnostics and

      V.            Consumer health: include over the counter medicines and animal health

Novartis AG looks likely to suffer most from the ongoing threat of competing drugs being brought into the volatile market, this drugs seems to be superior to the existing ones thereby putting biopharmaceutical companies on their toes. These uncertainties are slowly creeping into shareholders shaking their confidence on the long-term stability of the company.

An FDA probe is never a good thing for any company engaging in health care products. Novartis AG is currently being investigated on a case  in which one of their drugs Gilenya is thought to have caused a patient in the UK develop  a case of progressive multifocal leukoencephalopathy. Such kinds of investigations are not good as they tend considerably affecting the share price of stocks in stock exchanges.

Novartis had earlier undergone an investigation with FDA for its eventually approved Jakafi Drug. Shareholders should hope that this is only a scare that will just pass by without any major consequences. During the Jakafi drug inquiry by FDA, Novartis stock prices fell down by double a digit which is not a good thing in the ever uncertain world economies.

A positive thing that shareholder should chew about is the fact that Gilenya looks a strong option as compared to Sanofi’s Aubagio which was once expected to rule the MS treatments. What shareholders should be highly worried of now is the newly released and approved MS drug Tecifidera from Biogen Idec. This is a twice a day pill that was able to considerably reduces relapses rates in clinical trials by 49%.

The safety profile of Biogens Tecifidera is much improved and should give Novartis AG a run for its money in the stock exchange. Tecifidera beats Gilenya in this Niche in the sense that Gilenya lowers patient heart rate to points where it can cause cardiovascular problems which is not a good thing.

Novartis AG stock prices have been high outside the US and should remain the same as long as Tecifidera is not approved in many markets. The threat of improved safety profiles for MS drugs ought to be the main threat to share holders as related to Gilenya. The good thing with Novartis AG is that it has a huge drug and product base so the downfall of one drug might not have a big impact on its stability.

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