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Beyond the Pills: Novartis Goes Digital to Reshape the Healthcare System
EXCERPTS
NOVARTIS’ DIGITAL INITIATIVES
Novartis was an innovator in implementing new technology and had been using wireless technology since the year 2000. In 2008, when migrating to version 9 of Emerson’s DeltaV system , the company benefited from developments including integrated Wi-Fi and wireless security. In 2009, Novartis stretched the wireless architecture with additional Wi-Fi access points, applying a complete mobile wireless solution with the DeltaV system in its production levels. Philippe Heitz, head of engineering, Novartis, said, “In 2000, we introduced wireless technology and recognized that it was well suited to our needs... |
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COLLABORATION WITH GOOGLE [X]
Later in 2014, Novartis announced that its eye care division Alcon had entered into an agreement with a division of Google Inc. (Google) to license its ‘smart lens’ technology for all ocular medical uses like helping diabetics to track their blood glucose levels or restore the eye’s capability to focus...
DIGITALIZATION OF CLINICAL TRIALS
Novartis entered into a contract with the US investment company Qualcomm Ventures in 2015 to create a joint firm to support the digitalization of clinical trials. The US$100 million alliance would focus first on supporting start-up companies with technologies, products, and services...
NOVARTIS’ ROBOTIC PILL
Novartis was also collaborating with US start-up Rani Therapeutics (Rani) in 2015 to invent a “robotic pill” (Rani capsule) for complex biotech drugs that would normally have to be given by injection...
NOVARTIS TRIES OUTCOME-BASED PRICING
Novartis planned to test a novel pricing model with some customers when it launched its keenly awaited new heart failure drug Entresto in 2015. Entresto, also known as LCZ696, was the first new drug in decades aimed at helping patients suffering from congestive heart failure, a condition in which the heart could not pump blood efficiently. The drug basically reduced the burden on the heart...
OTHER INITIATIVES
Since 2013, Novartis had also developed and offered a number of apps for the benefit of its customers...
THE CHALLENGES
Analysts felt that Novartis’ digital initiatives were not free of risks and challenges. According to the experts, the normal speed at which pharmaceutical companies developed new drugs was 9 to 15 years...
LOOKING AHEAD
Pharmaceutical companies lost billions of dollars in sales from patients who were on long-term prescriptions but did not adhere to their medication schedules...
EXHIBITS
Exhibit I: Key Financials of Novartis AG
Exhibit II: The Top 10 Pharma Companies by Revenue-2014(In Billions of US$)
Exhibit III: Image from My NET Manager App
Exhibit IV: Image from Clinical Trial Seek App
Exhibit V: Images from Novartis Medical Information App
Exhibit VI: Images from ViaOpta App
