Novartis assesses re-entry into vaccines

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"To an extent yes, we plan to re-enter, but not that we would reactivate our former vaccine division because we would subscale and not competitive if we do not have all the resources at our end. Therefore, we are not looking to launch competitive COVID vaccine programs," he said.

In 2015, Novartis had finalised the sale of its vaccines business, excluding flu, to GSK for $7.1 billion, while buying GSK's oncology products business for $14.5 billion. Novartis' move was with an aim to simplify its business structure and focus on high-margin cancer drugs business.

The COVID-19 pandemic brought a change to the thinking and Hegemann says their current outlook is to be in the vaccine space and see how the industry can pool resources and build vaccine capabilities.

Also read: How do we know the COVID-19 vaccines are safe?

The company has signed a deal with Pfizer Inc to manufacture the COVID-19 vaccine developed by Pfizer-BioNTech at its Swiss plant. The initial agreement will see Novartis commence production of the mRNA vaccine in the second quarter of 2021 at its aseptic manufacturing plant in Stein and initial shipment of finished product is expected in third quarter 2021.

Hegemann says the company is currently evaluating how the vaccine initiative will eventually shape up, whether it would work as an R&D accelerator and support vaccine development or will only focus on manufacturing. But the deal with Pfizer BioNTech to manufacture their COVID vaccine is a step in the direction.

"When you have 5-10-20 vaccine candidates, I think it is more important that you focus on a few and help to accelerate those who want to increase manufacturing capacity. I believe it's more of a service to mankind than trying to have competing research programs that potentially maybe subscale or may not get you to the desired outcome," he said.