a16z Podcast
Novartis CEO Vasant Narasimhan on Transforming a 250-Year-Old Company
a16z Podcast
•February 16, 2026•58 min
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a16z Podcast•Feb 16, 2026
Why It Matters
The conversation highlights how legacy pharma giants can reinvent themselves through cutting‑edge biologics and digital tools, a blueprint that could reshape the entire industry’s innovation pipeline. For investors, entrepreneurs, and policymakers, understanding these strategic shifts is crucial as they dictate where future therapeutic breakthroughs and market opportunities will emerge.
Key Takeaways
- •Spun off three businesses, unlocking $180 billion value.
- •Refocused Novartis on four therapeutic areas and three platform technologies.
- •Cell therapy shows functional cures, entering immunology renaissance.
- •RNA medicines enable long‑acting, potentially yearly, cardiovascular treatments.
- •Gene therapy success with Zolgensma highlights challenges of broader platformization.
Pulse Analysis
Novartis’ six‑year transformation under CEO Vasant Narasimhan turned a 250‑year‑old conglomerate into a pure‑play medicines company. By divesting consumer health, animal health, vaccines and devices, the firm spun off three public entities—Alcon, Sandoz and its consumer joint venture—unlocking roughly $180 billion of shareholder value. This capital‑allocation overhaul let the organization concentrate resources on its core strengths: discovering and developing novel therapeutics. The strategic shift also aligns with investor expectations for focused biotech growth, positioning Novartis among the top ten global pharmaceutical leaders.
The new strategic blueprint centers on four disease pillars—oncology, immunology, neuroscience, and cardiorenal—and three platform technologies: cell and gene therapies, RNA medicines, and radioligand therapies. Breakthroughs in cell therapy now promise functional cures for autoimmune conditions, moving beyond early cancer applications and reducing manufacturing costs through rapid, vein‑to‑vein processes. Gene therapy’s flagship, Zolgensma, demonstrates life‑changing outcomes for spinal muscular atrophy, yet broader platformization remains a technical hurdle. Meanwhile, RNA therapeutics are maturing into once‑yearly, high‑efficacy cardiovascular drugs, with delivery innovations expanding reach beyond the liver to muscle, brain, and kidney.
For business leaders, Novartis’ disciplined focus illustrates how strategic divestitures can free capital for high‑impact innovation while mitigating the risk of over‑diversification. The company’s commitment to platform technologies signals sustained investment in next‑generation modalities that could reshape drug pricing, patient access, and market dynamics. As the biotech landscape embraces cell‑gene‑RNA convergence, Novartis’ pure‑play model offers a template for legacy firms seeking growth through scientific depth rather than breadth, making its roadmap a critical case study for investors, partners, and policymakers alike.
Episode Description
a16z general partner Jorge Conde talks with Vasant Narasimhan, CEO of Novartis International, about transforming a 250-year-old conglomerate into a pure play medicines company and unlocking $180 billion of value in the process. They cover Novartis's platform technologies: cell and gene therapies, RNA medicines, and radioligand therapies. They also discuss AI in drug discovery, the rise of China as a biotech competitor, and what Vasant looks for when evaluating startup partnerships, including his advice on the killer experiments and CMC work that can make or break a deal.
Resources:
Follow Vasant Narasimhan on X: https://twitter.com/VasNarasimhan
Follow Jorge Conde on X: https://x.com/JorgeCondeBio
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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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Show Notes
Episode Summary
a16z general partner Jorge Conde talks with Vasant Narasimhan, CEO of Novartis International, about transforming a 250-year-old conglomerate into a pure play medicines company and unlocking $180 billion of value in the process. They cover Novartis's platform technologies: cell and gene therapies, RNA medicines, and radioligand therapies. They also discuss AI in drug discovery, the rise of China as a biotech competitor, and what Vasant looks for when evaluating startup partnerships, including his advice on the killer experiments and CMC work that can make or break a deal.
Episode Notes
a16z general partner Jorge Conde talks with Vasant Narasimhan, CEO of Novartis International, about transforming a 250-year-old conglomerate into a pure play medicines company and unlocking $180 billion of value in the process. They cover Novartis's platform technologies: cell and gene therapies, RNA medicines, and radioligand therapies. They also discuss AI in drug discovery, the rise of China as a biotech competitor, and what Vasant looks for when evaluating startup partnerships, including his advice on the killer experiments and CMC work that can make or break a deal.
Resources:
Follow Vasant Narasimhan on X: https://twitter.com/VasNarasimhan
Follow Jorge Conde on X: https://x.com/JorgeCondeBio
Stay Updated:
Find a16z on YouTube: YouTube
Find a16z on X
Find a16z onLinkedIn
Listen to the a16z Show on Spotify
Listen to the a16z Show on Apple Podcasts
Follow our host: https://twitter.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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