Novartis annual result: golden handshake for boss Jimenez?
The bosses of Basel pharmaceutical giant Novartis have presented their annual results for 2017. There is tension at the campus regarding the expectations of high profits as well as questions about the severance pay of the outgoing CEO Joe Jimenez.
When Sandoz and Ciba Geigy merged in 1996, Graubunden doctor Daniel Vasella became the boss of the mega company. Through this, the top manager of the smaller company was promoted to CEO of Novartis. After 14 years, the American Joe Jimenez replaced him as CEO. The ambitious swimmer was promoted to the board of management as a "cleaner".
He was expected to give the concern, which had allegedly become "sedate", a bit of fitness trimming. In fact, rounds of savings followed restructuring on top of new savings and restructuring. At the same time, the company lost its shape. The 50-billion dollar deal to buy the American ophthalmology specialist Alcon especially did not bring Novartis any luck. While Daniel Vasella left his position four years ago as board chairman and his rival at Bayer, Jörg Reinhardt, took over the presidency, Jimenez could not shake off the shadow of his predecessor.
From pharma giant to "fallen angel"
Last July, Novartis was also considered by stock exchange analysts as a "fallen angel". Not only was the pharma giant always shaken by scandals, there were also several setbacks with the discovery of the heart medicine "Entresto". As sporty as Mr Jimenez is, he told the “Basellandschaftliche Zeitung” that there have been highs and lows in the industry, although he believes that the pipeline of Novartis is full. Meanwhile it is clear that the CEO is ready to give up his post and return to California.
When Novartis, the University of Basel, and the UKBB announced their great ambition for founding a new institute for eye medicine, Jörg Reinhardt hailed this collaboration as "ground-breaking". The company boss was nowhere to be seen. There is little doubt that Mr Reinhardt was known as the leading man at Novartis, while Mr Jimenez stayed in the job to answer the uncomfortable questions.
"Uncomfortable questions" department
With regards to the "uncomfortable questions" department, Mr Jimenez must on Wednesday explain the price fluctuations of the 219 billion dollar company at the annual results presentation. Shares in Novartis reached a record high of around 101.40 francs in summer 2015. However, since then they have fallen by 30 per cent. The market value of Novartis is the second highest next to Nestlé listed on the Swiss Market Index (SMI). The health company is responsible for 19 per cent of the entire capitalisation of the stock exchange.
Enough arrows in their quivers, including Glivec
In the meantime, the chemical giant has a number of new medications in the pipeline. It will help the company to get over the patent expiry of blockbuster cancer drug, Glivec. In July last year, Mr Jimenez announced during an interview with American business TV channel, CNBC, that Novartis will this year return to higher profits. Nevertheless, tension reigns on the campus ahead of the annual results presentation. It is unclear what the revenue of the fourth quarter of the last year will be.
Joe Jimenez will barely relate to these annual results. He and his family are – despite having a "fantastic time" in Switzerland – really looking forward to returning to California. And the departure of Daniel Vasella shows that he will probably not have any financial worries. And even if he does not get his own private helicopter, he will not leave with an empty hand.
Man hit by car on pedestrian crossing in Lörrach
A man was seriously injured after being struck by a car on a pedestrian crossing on Sunday night in Lörrach.
The 24-year-old man was wearing dark clothes when he was crossing the Basler Strasse/Weiler Strasse intersection at the pedestrian crossing just before 6.30pm.
The man was listening to music on his headphones, which – it is presumed – did not allow him to hear an approaching car. Because of the darkness, a female driver saw the man too late and hit him.
The pedestrian was seriously injured and had to be rushed to hospital by ambulance. The female driver is suspected of causing bodily injury through negligence.
Federer beats Fucsovics, now Berdych awaits
Basler Roger Federer has yet to lose a set at the Australian Open in Melbourne. In the latest round of the last sixteen, the title-holder beat Hungarian Márton Fucsovics (ATP 80) in three straight sets.
It took Federer just over two hours to score his first match point at the Rod Laver Arena with a volley and win 6:4, 7:6 (7:3), 6:2. In his first appearance on an afternoon in Melbourne this year, the 36-year-old gave a solid but not extraordinary performance; in the first two sets Federer committed more mistakes than usual. Compared to his matches in the evenings the conditions have not been much different. “There was a bit more wind and the balls flew considerably more,” Federer said.
Like so many times in the past, the titleholder could raise his game in the decisive moments. In the first set Federer could bring the tiebreak to 6:4, in the second set he speeded up in the tiebreak at 3:3 and won the set with three wins in a row.
Being behind after two sets meant Fucsovics' resistance was broken, despite him playing well. Just at the start of the third set Federer breaked and was no longer in danger of losing; he didn't have to defend a break ball during the entire match. “It was on me to make the difference,” Federer said. “Luckily I succeeded.”
In his first victory in the first match with Fucsovics, the Swiss player expanded one of the many records. In Melbourne, the five-time champion reached the quarterfinals for the 14th time, while on Wednesday he will play a quarterfinal of a grand-slam-tournament for the 52nd time. The second ranked on the ATP list, at 36 years and 173 days of age, is the oldest player since Jimmy Connors played at the US Open in 1991 and reached the quarterfinals at a major tournament.
Now Berdych awaits
The next adversary waiting for Federer is Tomas Berdych. The 32-year-old Czech player beat Italian Fabio Fognini (ATP 25) clearly with 6:1, 6:4, 6:4. The long-time top ten player Berdych, who fell back to rank 20, came back to Melbourne super fit after he had to finish last season early due to back problems.
Berdych has reached the round of the last eight for the seventh time in Melbourne. In the four matches against Alex de Minuar, Guillermo Garcia-Lopez, Juan Martin Del Potro, and Fognini, the semi-finalist of 2014 and 2015 lost only two sets. “I feel fit, I am in good health and try to enjoy every moment on the court, no matter who I am playing,” Berdych said.
Federer won 19 out of 25 matches against Berdych, also in the third round in Melbourne when he beat the Czech player in a gala performance in three sets. “We played a great match,” said Federer. It was the start of a series which brought him the fifth triumph in Melbourne after 2004, 2006, 2007, and 2010 – just when he came back on tour. “I hope I can get inspiration from that match,” he said. His last defeat against Berdych was five years ago in Dubai, but since then he has won all eight matches. Last year, in Miami, Federer only succeeded after defending match points.