ZURICH (AFX) - Novartis AG does not plan any large scale acquisitions although it remains interested in small takeovers to round off its existing product portfolio, chief financial officer Raymund Breu said.
In an interview with Swiss finance bi-weekly Finanz und Wirtschaft, Breu said that following the last round of acquisitions, Novartis boasts the most complete product portfolio of all pharmaceutical companies.
With takeovers in the generics and vaccines segments, Novartis has invested in two of the fastest growing segments, showing annual growth rates of 11 and 10-20 pct respectively, Breu said.
The two sectors significantly outperform growth in the traditional pharma segment, which grows by roughly 6 pct annually.
Breu also pledged that R&D spending will grow roughly in line with sales growth.
'We plan to continue to invest heavily. This includes further expansion (at existing sites) in Boston and Basel as well as investments in China,' Breu said.
Higher marketing and sales spending is likely to result in lower pharma margins next year, although this should be compensated for by margin improvements in generics and vaccines, he said. afx.zurich@afxnews.com at/jlw COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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