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Novartis CEO: How AI Transforms a 250-Year-Old Company

By TLDL

Novartis transformed from diversified conglomerate into pure-play medicines company, unlocking $180B in value. Here's how AI factors into the strategy.

Novartis CEO: How AI Transforms a 250-Year-Old Company

Novartis isn't your typical tech company. But it's becoming an AI company. The transformation reveals how AI changes even the most traditional industries.

Here's how the 250-year-old pharma giant approaches AI.

The Transformation

Novartis transformed from diversified conglomerate into pure-play medicines company.

The shift unlocked roughly $180 billion in shareholder value.

This wasn't just corporate restructuring. It was strategic refocusing on what matters: developing breakthrough medicines.

The Technology Platforms

Novartis concentrates on three technology platforms:

Cell and gene therapies are maturing with manufacturing gains. These represent the frontier of personalized medicine.

RNA medicines including siRNA offer new approaches to previously undruggable targets.

Radioligand therapies provide targeted treatment options.

Each platform applies across oncology, immunology, neuroscience, and cardiorenal.

AI's Role

AI factors into the strategy:

R&D acceleration. AI helps identify drug candidates faster.

Clinical trial design. Machine learning improves trial protocols.

Manufacturing efficiency. AI optimizes production processes.

The goal: get treatments to patients faster.

The Leadership Perspective

CEO Vasant Narasimhan emphasizes:

  • Focus on core capabilities
  • Strategic use of technology
  • Patient outcomes as the metric

This represents how traditional industries think about AI: as a tool to enhance existing strengths, not disrupt the business model.

What This Means

Large enterprises approach AI differently than startups:

  • Focus on augmenting existing capabilities
  • Careful validation of AI recommendations
  • Human oversight remains essential

The pharma industry is being transformed—but from within, not by outside disruption.


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