Novartis-Alcon merger strengthens domestic market

JAKARTA: The completed merger between global pharmacy company Novartis and Alcon Inc is believed to strengthen Novartis' position in healthcare and pharmacy business in Indonesia, as capital enlargement and merger listing in the market will follow the corporate action.The merger completed following the approval from shareholders of Novartis, according to President Director PT Novartis Indonesia Luthfi Mardiansyah.Acquisition of Alcon in Novartis will create a stronger eye-care business with wider commercial network, and will increase the capability to develop new and innovative eye-care products, he said.In the merger action, Novartis sought for 165 million shares more after acquiring 16.1 million of Alcon's shares at the open market since the merger was announced last year.Of 165 million shares, 108 million are new shares that came from the companys capital enlargement. The remaining 57 million shares are not traded anymore.The new Alcon division in Indonesia will include the existing business of Alcon, i.e. CIBA Vision and eye-care products. Novartis ensures that in a near time the merger will not influence the service to customers in Indonesia, including the special customers.Novartis is one major player at global and domestic pharmacy markets. Its products include innovative drugs, eye care, generic drugs, consumer health products, disease prevention vaccine and diagnosing tools.Last year, Novartis Group recorded sales as much as US$50.6 billion and invested US$9.1 billion for research of all its business group.Based on IMS data in 2010, Novartis was in the 18th rank of national pharmacy companies with biggest sales in Indonesia, with value of IDR521 billion compared to total market at IDR34.5 trillion.Meanwhile, for the category of prescribed drugs, Novartis was ranked 13th with IDR435 billion in value. (T04/NOM)