Novartis CEO Paul Hudson: Empowering Patients with Chronic Diseases and Seizing Opportunities in China's Healthcare Market

Entering 2019, Novartis was relatively “busy.” In March, it signed a new strategic cooperation memorandum with Tencent, and the Novartis Institutes for BioMedical Research (China) was officially inaugurated in Beijing. In April, Cosentyx (secukinumab), used for the treatment of psoriasis, was approved by the National Medical Products Administration...

As one of the top three pharmaceutical companies globally, Novartis is committed to meeting the evolving health needs of patients and society, continuously accelerating its business expansion in China.

Multiple Initiatives Serving Patients with Chronic Diseases in China

“Novartis’s product portfolio in China spans multiple therapeutic areas, including hypertension, cardiovascular diseases, metabolism, ophthalmology, central nervous system disorders, respiratory diseases, immunology and dermatology, and transplantation. Over the past three decades, 62 innovative drugs have been successfully approved,” said Paul Hudson, CEO of Novartis. He noted that, traditionally, Novartis’s investments in China encompassed manufacturing, clinical research, and basic R&D. However, driven by the advancement of digital technologies in China, the company has undertaken substantial initiatives in the healthcare sector to benefit patients with chronic diseases in the country.

Novartis CEO Paul Hudson

When discussing how to serve chronic disease patients in China, Paul Hudson cited the collaboration with Tencent as a prime example of emerging opportunities. AI-enabled nursing services facilitate remote patient engagement, thereby improving clinical outcomes in disease management. By scanning QR codes on packaging, patients can access further information about their condition and treatment, as well as understand the importance of medication adherence. Supported by remote capabilities, these digital technologies help improve treatment outcomes and benefit patients with chronic diseases, even those in remote areas.

Paul Han humorously remarked that he has already started using WeChat, as the platform enables Novartis staff to engage in real-time interactions with physicians. “Chinese patients are far ahead of the rest of the world in both the usage patterns and behaviors related to mobile technology and data. There is much we can learn in this regard,” said Mr. Han. He noted that such a highly integrated multi-functional platform is unique globally. Novartis hopes to leverage these technological tools to facilitate communication between doctors and patients, ultimately improving treatment outcomes.

The Healthcare Industry Is Full of Business Opportunities

Before joining Novartis, Paul Han worked successively at GlaxoSmithKline, Sanofi-Aventis, Schering-Plough, and AstraZeneca. As a seasoned industry veteran and the “helmsman” of a renowned pharmaceutical company, he possesses exceptionally keen insights into China’s healthcare sector. “In 2018, China approved 48 new drugs, a figure comparable to the number of drugs approved in the United States within a year. Following its 2017 update, China’s National Reimbursement Drug List is set for another update this year, with the possibility of transitioning to dynamic updates thereafter, revealing many exciting opportunities.”

It is reported that in 2018, multiple Novartis products were included in China’s national medical insurance reimbursement system through national drug price negotiations. As a new round of medical insurance adjustments is currently underway, what are Novartis Pharmaceuticals’ plans? In response, Paul Hudson stated that regular and predictable updates to the National Reimbursement Drug List (NRDL) enable pharmaceutical companies to make more sustainable investment decisions. He pointed out that Novartis hopes to have many of its drugs included in the NRDL, with Entresto being the most highly anticipated. If Entresto is added to the list by the end of this year, it will benefit a large number of heart failure patients. For Novartis, this would not only mark a milestone but also lay the foundation for further accelerated growth.

When asked whether inclusion in the national drug price negotiations would entail substantial price reductions, Paul Hudson stated that Novartis believes it can reach reasonable pricing agreements with the government through these negotiations. He emphasized that a balance can be achieved—benefiting patients through lower prices while ensuring sufficient revenue to support sustainable business operations and provide ample funding for innovation. Mr. Hudson further expressed confidence that the prices established through these negotiations would align with and support Novartis’ advocacy of “value-based” drug pricing.

In Paul Han’s view, China’s vast population base has traditionally led to a greater allocation of healthcare insurance funds toward existing, marketed drugs. The government’s initiative to tilt funding toward branded non-originator drugs, drug reimbursement, and the encouragement of innovative medicines has surpassed many countries, achieving leapfrog development.

A More Brilliant Future in China

When discussing Novartis’s recent performance, ranking, and positioning in China, Paul Hudson stated, “I am very proud of Novartis’s development in China over the past five years and believe that the next five to ten years will be even more remarkable. Although China currently accounts for a relatively small share of our global pharmaceutical business, I am confident that it will undoubtedly become the brightest spot and the fastest-growing region worldwide in the next five years.”

When asked to describe Novartis’ future development in China using keywords, Paul Hudson listed “innovation, value, operational excellence, talent development, and integrity-driven success.” He then provided a detailed explanation: “By ‘value,’ I mean delivering value through both pharmaceuticals and digitally driven solutions, ensuring patient benefit through reasonable pricing. Each visit to China, where I engage with the management team and colleagues of Novartis China Pharmaceuticals, brings me great satisfaction and joy, as the team boasts many young talents. Our current task is to leverage this excellent Chinese team beyond China’s borders, enabling its outstanding members to assume significant roles on the global stage.”

Discussing the development strategy in China, Paul Hudson pointed out that Chinese innovative pharmaceutical companies have developed rapidly in recent years. If opportunities arise, Novartis will deliver effective medicines to Chinese patients through various forms. Additionally, he expressed hope for collaboration with Chinese enterprises to license and promote China's basic research achievements globally. Regarding how to select qualified partners, Paul Hudson stated that the leading edge and value of the foundational research brought by potential partners would be key considerations. Based on this, Novartis would choose appropriate methods of cooperation. When discussing future new drug launch plans in China, Paul Hudson mentioned that apart from accelerating the market entry of Cosentyx to benefit patients, Novartis’ new drug launches would bring “surprises” to patients. He noted that Fevipiprant, currently under development, can help respiratory disease patients control disease progression and alleviate symptoms simply through oral administration, eliminating the need for hospital visits for nebulization or other treatments. Furthermore, educational activities targeting multiple sclerosis will be conducted around Gilenya (fingolimod) and three other drugs in the central nervous system field. Additionally, some existing drugs will be promoted for new indications; for example, Cosentyx can treat ankylosing spondylitis, and Entresto can also treat potential hypertension.

“Whether new drugs or new indications for existing medicines, they will reshape the landscape of their respective therapeutic areas,” affirmed Paul Han. He emphasized that Novartis aims to help all patients, particularly those unable to afford treatment, by providing them with the most effective therapies and appropriate innovative medicines within the current policy framework. Additionally, Paul Han revealed that Novartis expects to launch 32 new drugs and new indications in China by 2024.

“I have visited China many times and am particularly confident in the Chinese government’s policies supporting improvements in public health and fostering innovation.” Paul Han expressed great satisfaction in seeing that Novartis has an excellent management and leadership team in China. He believes that the team’s commitment to innovation and integrity, along with its ongoing cultural transformation, will serve as the cornerstone of Novartis’ success in the country.

(For more thoughtful and easy-to-understand health science popularization, as well as live interactive sessions with renowned physicians from top-tier hospitals, please follow the People's Good Doctor APP)