The CEO of Novartis (NYSE:NVS) said Wednesday that the Swiss pharmaceutical giant does not plan to enter into the “frenzy” of weight loss drugs, preferring instead to focus on areas where it can build a “unique position.”
Vas Narasimhan said that the company was researching treatments that deal with the secondary effects of weight loss, but that it does not plan to compete directly with dominant obesity drugmakers Novo Nordisk (NYSE:NVO) and Eli Lilly (NYSE:LLY)
“I think just to follow on the frenzy now would not be the right move for Novartis,” he said.
“With obesity right now, we have two very entrenched large players, and I think for future entrants you have to find something new, some sort of new angle that either reduces the nausea and the vomiting or gives patients the ability to lose their weight and retain their muscle,” he said, highlighting existing work in such areas within Novartis’ research labs.
Obesity drug competition has been ramping up over recent months, with major players such as Roche and Pfizer (NYSE:PFE) entering the market, which is estimated to be worth up to $200 billion within the coming decade.
However, Narasimhan said his company was targeting areas “we know we can win.” Those include treatments for diseases such as Alzheimer’s, Huntington’s and Parkinson’s, as well as various cancer therapies.
NVS shares gained 57 cents to $116.27.