Author: Nelson Mussolini, Corporate Director, Novartis

Source: Valor Econômico, 31/10/2007

“Regarding the article` Brazil loses Novartis factory`, published in yesterday's edition of Valor, we would like to clarify that, so far, there is no definition about the location of investments in vaccine production by the company.

The plant mentioned in the article is intended for the production of biotechnological medicines for our pharmaceutical division. According to the article itself, `Vasella traveled from the company's headquarters in Basel to Berne (…) to tell Foreign Minister Celso Amorim that Brazil has a good chance of obtaining the investment that is likely to be destined for Latin America`.

Thus, the title of the article does not reflect that described in the text. Brazil is a growing market and, therefore, Novartis is looking for opportunities for collaboration, before any definition about the location of the vaccine plant. Last week, the president of Novartis Vacinas & Diagnósticos was in the country, where he met with representatives of the federal government and the state of Pernambuco. The executive was impressed with the current Brazilian political and economic moment and with the qualities of Pernambuco, possible recipient of the investment. Finally, Novartis points out that the protection of its intellectual property has always been a central point in its discussions with the governments of different countries and that it has never had a problem recognizing its right to patents in Brazil. ”