The CEO of Novartis The Swiss pharmaceutical giant has no intention of getting into the “frenzy” of weight loss drugs, but prefers to focus on areas where it can build a “unique position.”
Speaking to CNBC, Vas Narasimhan said the company was researching treatments that address the side effects of weight loss, but that it does not plan to compete directly with dominant obesity drug makers. New Nordisk and Eli Lilly.
“I think continuing this frenzy now would not be the right decision for Novartis,” he told CNBC's “Squawk Box Europe.”
“Currently, in the obesity space, we have two big, entrenched players, and I think for future entrants, you have to find something new, some kind of new angle that reduces nausea and vomiting or gives patients the ability to lose weight and preserve muscle mass,” he said, highlighting existing work in those areas within Novartis' research labs.
Competition among anti-obesity drugs has intensified in recent months, with major players such as Roche and Pfizer entering the market, which is estimated to be worth up to $200 billion over the next decade.
However, Narasimhan said his company was targeting areas “where we know we can win,” including treatments for diseases such as Alzheimer's, Huntington's and Parkinson's, as well as various cancer therapies.
In particular, it said it saw a considerable market opportunity in its growing radioligand therapies (RLT), a cancer treatment that targets cancer cells. So far, the company has made two acquisitions and launched two drugs in this field.
“That's an area where we think we could build a $20 billion-plus business over time and hopefully build a unique position rather than chasing other markets,” he said.
“These are places where I feel we have a right to win,” he added.
His comments come after the company received approval from the U.S. Food and Drug Administration on Tuesday for its metastatic breast cancer drug Kisqali to be used to treat patients in earlier stages of the disease.
Novartis Shares were down 0.3% at 9:30 a.m. London time on Wednesday, after a brief surge at the opening of the session.
