Novartis CEO states that the company is not participating in the trend of weight loss drugs.

• Novartis announced on Wednesday that it has no intention of joining the craze for weight loss medications.
• The CEO stated that the company is investigating treatments for the side effects of weight loss, but does not intend to compete directly with Novo Nordisk and Eli Lilly.
• The company's growing cancer therapy offering presented a $20 billion market opportunity, as stated by Narasimhan.

The CEO of the Swiss pharmaceutical giant stated on Wednesday that the company does not intend to participate in the "craze" of weight loss drugs, opting instead to concentrate on areas where it can establish a "distinctive advantage."

According to Vas Narasimhan, speaking to CNBC, the company is currently researching treatments for the secondary effects of weight loss, but has no plans to directly compete with dominant obesity drug manufacturers.

"He stated on CNBC's "Squawk Box Europe" that following the current frenzy would not be the appropriate action for Novartis."

According to him, the current market for obesity treatment is dominated by two large players, and for future entrants to succeed, they must develop a new approach that addresses the nausea and vomiting associated with weight loss or enables patients to maintain their muscle mass while losing weight. He emphasized that Novartis' research labs are already working on such solutions.

The market for obesity drugs is growing rapidly, with major players like and entering the competition, which is projected to be worth up to $200 billion in the next decade.

Narasimhan stated that his company was focusing on regions where they have a high chance of success. These areas include treatments for conditions such as Alzheimer's, Huntington's, and Parkinson's, as well as various cancer therapies.

The company has identified a significant market opportunity in the growing radioligand therapies (RLTs) cancer treatment, which targets cancerous cells. So far, the company has made two acquisitions and launched two medicines within this space.

He stated that there is potential to establish a $20 billion-plus business in that specific area, with the aim of distinguishing themselves from competitors.

He stated, "These are locations where I believe we possess the ability to triumph."

The U.S. Food and Drug Administration approved the use of Kisqali metastatic breast cancer drug to treat patients with earlier stages of the disease, and his comments followed this approval on Tuesday.

The stock market saw a 0.3% decline in share prices by 9:30 a.m. London time on Wednesday, following a brief increase at the opening session.