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Novartis Bets Big on Meningitis:Wall Street Awaits Blockbuster Vaccine Franchise

This article was originally published in RPM Report

Executive Summary

Two years after shaking up the vaccine field with its big entry-acquisition of Chiron, Novartis AG has identified a make-or-break pair of projects in the meningitis area. The meningitis vaccines will determine whether the Novartis bet on vaccines will turn into a smart long-term diversification or a low-return move into an unfamiliar and unfriendly segment of health care.

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GlaxoSmithKline has encountered numerous hurdles trying to get its HPV vaccine onto the market to compete in the US against Merck’s Gardasil. GSK appears fi nally on the verge of completing the long process. The question for GSK—and the rest of the vaccine business—is whether the company has created the case for a strong product differentiation for Cervarix versus Gardasil. If it has, it will trigger a new era of vaccine marketing and product development.

Cervarix: Two Years Late, But In for the Duration

GlaxoSmithKline has encountered numerous hurdles trying to get its HPV vaccine onto the market to compete in the US against Merck’s Gardasil. GSK appears fi nally on the verge of completing the long process. The question for GSK—and the rest of the vaccine business—is whether the company has created the case for a strong product differentiation for Cervarix versus Gardasil. If it has, it will trigger a new era of vaccine marketing and product development.

Sticking Point: Novartis Menveo Vaccine Faces Delay Over FDA Request For Info

Although only a few months are at stake, this is the second setback this year for the product, which Novartis hopes will validate its vaccine investments.

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