Key Challenges

Overview

Pharmaceutical innovation in coming decades must address emerging diseases and other unmet medical needs to deliver sustained improvements in life expectancy and quality of life comparable to those achieved in the 20th century. Yet a flow of new medicines can’t be taken for granted.

Pharmaceutical companies play a dominant role in conducting and funding research and development. Overall, the pharmaceutical industry invests more than USD 50 billion a year in research and development, the single most important source of investment in health research.

During 2005, the Novartis Pharmaceuticals Division increased R&D investments by 18% to almost USD 4 billion, one of the highest figures in the global pharmaceutical industry relative to sales (19.6%). Still, there is considerable public hostility to the pharmaceutical industry today.

Critical stakeholders and the media attack the industry on issues ranging from pricing and promotional practices, to limited access to medicine in developing countries and scant research devoted to “neglected” diseases such as tuberculosis and malaria. In addition, drug safety has moved into the spotlight following withdrawals of major medicines in recent years.

Pharmaceutical companies are subject to more stringent scrutiny by the public and regulators than many other industries. Regulatory agencies may at any time reassess the safety and efficacy of our products based on new scientific knowledge or other factors. In addition to normal price competition in the marketplace, the prices of our Pharmaceuticals Division’s products are subject to direct controls and other pressures imposed by governments and health care providers in most countries.

Clinical trial registry

Drug safety

Contributing to the UN Millennium Development Goals (MDGs)

Results 2005/Targets 2006