What did Vasella see in Alcon?

Just why would Novartis pay $11 billion for one-fourth of an eye-care company and promise another $28 billion for another big chunk? The Wall Street Journal asked CEO Daniel Vasella (photo) just that. You've heard some of the reasons Novartis wanted Alcon: aging population, meaning more people with eye-care needs; and diversification. Here's another: The lack of pricing pressure on eye products. While insurers and government healthcare systems are twisting drugmakers' arms for pharma discounts, consumers typically are paying for the kind of eye-care products Alcon sells. "You can pass on price increases easier," Vasella said. "As soon as you get into regulated markets like pharma, it's more difficult."

And there lies the rub for much of the drug industry right now. Vasella predicts that pharma prices on the whole will decline--unless and until R&D innovation declines. "[T]hen society will have to make a decision: Do we want innovation or not?" he says.

- find more from Vasella in the WSJ
- check out an excerpt from that interview at Pharmalot

Related Articles:
Novartis: No more deals, no Roche sale.
Novartis pledges $39B for Alcon
Alcon faces setback on experimental AMD therapy
Cash-rich Novartis CEO mulls biotech buyouts
CEO: Novartis plans big restructuring

Free Webinar

What could you do with real-time supply chain information at your fingertips?

Interested in complete supply chain real-time data visibility? Unlock productivity with digital workflows, manage plants inventory with real-time supply chain information and enable faster decision-making with data visualization with pci | bridge. Register today!

Suggested Articles

Implementing data integration strategy in your commercialization breaks down traditional healthcare silos and improves patient outcomes.

Roche and Blueprint's RET inhibitor Gavreto has won FDA go-ahead to treat certain types of thyroid cancer, leveling the field with Lilly's Retevmo.

CDMO Sterling Pharma Solutions is plotting a buyout of a U.K.-based antibody-drug conjugate specialist in a new bid at the next-gen cancer fighters.