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Novartis Australia

OVERALL

Owned
SWI
Rating
Criticism, some praise

Pharmaceuticals

In Australia Novartis operates in two areas: pharmaceuticals and generics.

Company Ownership

Novartis Australia Pty Ltd   AUS     website         
  Novartis AG   
   owns 100% of Novartis Australia Pty Ltd  
SWI     website      facebook   twitter

Pharmaceuticals manufacturer

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.

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
Novartis Australia Pty Ltd
Business Ethics Political donations
According to the democracyforsale.net website, this company donated $601,596 to Australia's major political parties between 2012 and 2018, as disclosed to the Australian Electoral Commision (AEC).
Source: Democracy For Sale (2018)
Environment Green Power user
This company purchases accredited GreenPower (renewable energy) for their business operations.
Source: Green Power (2018)
Novartis AG
Environment CDP Climate Change Score of A
In 2022, 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 (2022)
Social CDP Water Security Score of A
In 2022, 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 (2022)
Business Ethics 84/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 84/100 in the Pharmaceuticals category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 23 Sep 2022). 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 (2022)
Social Access to Medicine ranking
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)
Environment Supply chain practices in China
This company received a score of 7.8/100 (retrieved 10-Oct-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)
Social 23.4% in conflict minerals rankings
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)
Business Ethics Fined for fraud in USA
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)
Business Ethics Fined US$678m for fraud in USA
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)
Business Ethics Fined for pharmacy kickbacks
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)
Business Ethics 44.6% in Newsweek Green Ranking 2017
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)
Social Public Eye Award Winner 2007
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)
Social Irresponsible marketing
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)
Animals Xenotransplantation experiments
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)
Business Ethics Drug patenting in India
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)
Business Ethics Fines for misconduct
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)
Environment Climate action commitments
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; commit to electric vehicles; commit to 100% renewable power.
Source: We Mean Business (2021)
Social Gender equality
This company appears on the 2021 Bloomberg Gender-Equality Index, signifying a commitment to supporting gender equality through policy development, representation, and transparency.
Source: Bloomberg (2021)
Business Ethics AMR Industry Alliance member
This company is a member of the AMR Industry Alliance, a coalition of biotech, diagnostics, generics and research-based pharmaceutical companies set up to provide sustainable solutions to curb antimicrobial resistance (AMR). AMR is an increasingly significant threat to global public health which puts at risk the effective prevention and treatment of a wide range of infections.
Source: AMR Industry Alliance (2021)
Social Modern Slavery statement
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: company website (2017)
Information Corporate Rap Sheet
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)

> About the Icons

Company Details

Type Wholly-owned subsidiary
Revenue 902 million AUD (2019)
Employees 810 (2019)

Contact Details

Address 54 Waterloo Rd, Macquarie Park, NSW , 2113, Australia
Phone 02 9805 3555
Freecall 1800 635 202
Website www.novartis.com.au

Products / Brands

Novartis Australia
Opti-Free Eye & Ear Care
Systane Eye & Ear Care


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