Title: Spending $15M on Signing, But Not Achieving European Qualification Goals: Analysis

The global financial crisis has caused many companies to face financial difficulties and have had to make tough decisions in order to survive. One such company that has faced this challenge is the Swiss-based pharmaceutical company, Novartis. The company's decision to spend $15 million on signing without achieving European qualification goals was met with criticism from various stakeholders, including shareholders, customers, employees, and regulators.

Analysis

Novartis' decision to sign without achieving European qualification goals has raised questions about the effectiveness of the company's strategy and whether it is sustainable in the long run. While some argue that investing in research and development can lead to better products and treatments, others believe that the lack of success in Europe will ultimately hurt the company's bottom line.

One reason for Novartis' failure to achieve European qualification goals is that the company did not invest enough resources into its European operations. According to a report by the European Medicines Agency (EMA), Novartis spent only €16 million on research and development in Europe during the period between 2014 and 2018, which represents just 1% of its total spending on research and development in the EU. This lack of investment could be attributed to several factors, including a lack of funding from the European Commission or the lack of interest among European investors in the company's European operations.

Another factor that may have contributed to Novartis' failure to achieve European qualification goals is the company's focus on international sales rather than domestic markets. As the world becomes more globalized, there is a growing demand for foreign pharmaceuticals, particularly in countries where there is no equivalent of Novartis' drug products. However, Novartis has not been able to compete effectively against these competitors in international markets, despite its investments in research and development.

Conclusion

In conclusion, while Novartis' decision to sign without achieving European qualification goals is certainly a concern, it is important to consider the broader implications of this decision. The company's failure to achieve European qualification goals highlights the importance of investing in research and development as well as in international sales. In order for the company to succeed in the long run, it must continue to prioritize both investment in research and development and international sales in order to stay competitive and secure its future.