Novartis was created in 1996 through the merger of 2 Swiss companies, Ciba-Geigy and Sandoz. Completed a complex three-part transaction with GSK in 2015: GSK acquired Novartis' global vaccines business, Novartis bought GSK's oncology business, and the two companies formed a Consumer Healthcare joint venture. GSK bought Novartis' stake in the joint venture in 2018.
In 2019, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of A-.
Source: CDP (2019)
In 2019, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security Score of A.
Source: CDP (2019)
This company received the second highest score in the Access to Medicine Index 2018, a ranking of the world's 20 largest pharmaceutical companies on their efforts to increase access to medicine in developing countries.
Source: Access to Medicine Index (2018)
This company received an S&P Global ESG Score of 74/100 in the Pharmaceuticals category of the 2019 SAM Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices. The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
Source: S&P Global (2019)
This company received a score of 8.4/100 (retrieved 25-Feb-2020) in the Corporate Information Transparency Index (CITI), a system for evaluating supply chain practices in China, particularly in regards to environmental management and water pollution. Scores are calculated using government compliance data, online monitoring data, and third-party environmental audits, as well as trends in the environmental performance of factories in the company's supply chains.
Source: IPE (2020)
As You Sow's 2019 report, Mining the Disclosures, is a deep analysis of 215 companies' human rights performance in relation to sourcing conflict minerals from the Democratic Republic of the Congo (DRC). This company's score was 23.4% (Weak).
Source: As You Sow (2019)
In 2015 the US Justice Department fined this company US$390 million for granting kickbacks to pharmacies that recommended the company's drugs. In a settlement deal, Novartis admitted that it gave specialty pharmacies exceptional rebates and patient referrals in exchange for recommending Exjade, which treats excess iron in blood, and Myfortic, an anti-rejection drug for kidney transplant recipients. The civil settlement is smaller than the $3.3 billion fine the government originally sought in the case.
Source: news article (2015)
This company received a score of 44.6/100 in the Newsweek Green Ranking 2017, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor.
Source: Newsweek (2017)
In July 2020 Novartis agreed to pay $678 million to settle a civil fraud lawsuit. The US government accused Novartis of illegally providing doctors with cash payments and other perks to induce them to prescribe its cardiovascular and diabetes drugs.
Source: news article (2020)
In 2019 several pharmaceutical companies finally settled a 2005 lawsuit which claimed the companies fudged wholesale drug prices to increase Medicaid reimbursements. In all, the state of Illinois received a combined $648 million over the course of that litigation. A subsidiary of this company was involved in the 2019 settlement.
Source: news article (2019)
Public Eye Awards are given to companies with the worst record in terms of environmental pollution and human rights violations. Novartis received the award in 2007 for causing the halt of the production of generic cancer drugs in India. Listed under information due to age of award.
Source: Berne Declaration (2007)
Trileptal is an anti-convulsant and mood-stabilizer that is used to treat epilepsy and bipolar disorders. The drug was designed to subdue partial seizures, or ones that begin in a limited part of the brain. However, manufacturer Novartis marketed Trileptal and five other drugs Diovan, Exforge, Sandostatin, Tekturna and Zelnorm for treatments not approved by the FDA, including relieving psychiatric symptoms and pain. The false promotions led to false claims in federal health care plans. Novartis also was accused of paying kickbacks to physicians who prescribed the six drugs. Novartis pleaded guilty to a misdemeanor and paid $185 million in 2010. [Listed under Information due to age of court finding]
Source: Drug Watch (2010)
Novartis invested heavily in xenotransplantation research in the late 1990's using transgenic pigs, but stopped its research in the early 2000s. This research caused the deaths of thousands of animals and cost millions of dollars trying to develop animal organs for transplantation into humans. All attempts to carry out animal-to-human organ transplants failed.
Source: Nature (2015)
Novartis Boycott was a campaign undertaken by the DRUG ACTION FORUM, India against Novartis, a pharmaceutical company dedicated to establishing a patent protected market in India, by the removal of barriers to competition. Novartis challenged the rejection of grant for its anti-cancer drug in both the High Court and the Supreme Court of India. The boycott campaign was withdrawn when Novartis lost its Supreme Court case.
Source: Drug Action Forum (2007)
This company is listed on the Federal Contractor Misconduct Database as having 11 instances of misconduct since 1995 amounting to US$791 million in penalties. Instances include false claims, discrimination and illegal marketing.
Source: Project on Government Oversight (POGO) (2014)
As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target; put a price on carbon;
Source: We Mean Business (2017)
This company appears on the 2020 Bloomberg Gender-Equality Index, signifying a commitment to supporting gender equality through policy development, representation, and transparency.
Source: Bloomberg (2020)
California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement.
Source: Modern Slavery Registry (2017)
The Corporate Research Project's Corporate Rap Sheets are dossiers summarising the most significant crimes, violations and other questionable activities of the world's largest and most controversial companies. Follow link to see this company's Corporate Rap Sheet. " The businesses that went into the creation of Novartis have frequently been at the center of controversies concerning unsafe drugs and pesticides, price-gouging, improper marketing and toxic dumping. The company also had to pay more than $150 million to settle a sex discrimination lawsuit in the United States. Novartis was widely criticized for its drawn-out but ultimately unsuccessful battle against an Indian patent policy designed to make lower-cost drugs more widely available in poor countries. "
Source: Corporate Research Project (2018)
|Revenue||US$51.9 billion in 2018|
|Employees||125,161 in 2017|
|Subsidiaries||Novartis Australia Pty Ltd
Roche Holding Ltd (33% owned)
- Roche Products Pty Ltd