Novartis Benefits a Bit More from Glaxo Partnership: Kalorama

Healthcare market research firm Kalorama Information says the pharmaceutical giant Novartis benefits a bit more from its recently announced partnership with Glaxo Smith Kline.

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New York, NY (PRWEB) April 24, 2014

Healthcare market research firm Kalorama Information says the pharmaceutical giant Novartis benefits a bit more from its recently announced partnership with Glaxo Smith Kline. (http://www.bostonglobe.com/business/2014/04/22/novartis-unveils-multibillion-dollar-deals-with-glaxosmithkline-eli-lilly/6H6zL36yi0VeYOHrf4xkiJ/story.html). The two drug makers will cooperate and among other transactions, Glaxo will buy Novartis’s vaccine business and Novartis will gain Glaxo’s oncology drug pipeline. Kalorama broke out revenues of major pharma companies by these therapeutic areas in its recent report, “Top 25 Pharmaceutical Company Pipeline Analysis and Sales Projections to 2023.”

“In my opinion although some of this deal with strengthen GlaxoSmithKline and streamline its businesses, I think Novartis is coming out a tad better overall,” said Melissa Elder, analyst for Kalorama Information and the author of the report.

According to Kalorama’s recently released survey of the top 25 pharmaceutical companies, "Top 25 Pharmaceutical Company Pipeline Analysis and Sales Forecast to 2023," as of now, Novartis has about 1/3 of its pharmaceutical revenues coming from oncology products. Thus it certainly makes sense to build that area, according to Kalorama’s report. Novartis is currently number 2 in the world for cancer therapies behind Roche. The firm does not think that Novartis rises in market share from the deal, but it does believe it will certainly strengthen its position and maintain its wide distance from the 3rd competitor in the market.

Although Kalorama also thinks the move benefits Glaxo Smith Kline, there could be less advantages for the company in the deal than for Novartis.

“There are mutual benefits of course and acquiring the vaccine business from Novartis will help GSK in this area, which is a strong move but I think there will continue to be limitations in some vaccine areas,” Elder said.

Novartis will keep influenza vaccines, as part of the deal. Kalorama thinks that while this could work out to be highly beneficial, vaccines is a competitive area. The positions of companies do shift somewhat from year to year with vacillations in flu vaccines and other specific products, although for the past few years, Kalorama says Glaxo has led the market and Novartis has trailed at a distance. Furthermore, in pediatric vaccines GSK is also a major contributor and leader and solidifying this position is good but is not really helpful in the overall picture.

“It could be great for GSK, but there is also a lot hinging on development pipeline in this part of the deal,” Elder said.    

Kalorama Information’s report, “Top 25 Pharmaceutical Company Pipeline Analysis and Sales Projections to 2023” estimates current sales for major pharmaceutical companies, breaks out revenue by therapeutic area and discusses general trends in the industry. Market watchers can use the report to understand developments in greater context than news media can provide. The report can be obtained at: http://www.kaloramainformation.com/Pharmaceutical-Company-Pipeline-8102423/.

About Kalorama Information -- Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at http://www.kaloramainformation.com.


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