Novartis CEO: To Participate In Industry Consolidation

Novartis AG (NYSE:NVS - News) will take an active part in the pharmaceutical industry's consolidation, Chief Executive and Chairman Daniel Vasella said Tuesday. Speaking to shareholders at the Basel-based company's annual general meeting, Vasella said pricing pressure and the rising costs of research and development are promoting consolidation in the industry. However, he said, Novartis wouldn't embark on any acquisitions just for the sake of it. Any potential target would have to be a good strategic fit. Vasella didn't mention any specific companies. However he has made clear in the past that he would consider cross-town rival Roche Holding AG a good strategic fit. Novartis already owns a third of Roche's voting capital. There has also been some speculation that Novartis could emerge as a white knight for Franco-German pharmaceutical company Aventis SA , which faces a hostile bid from French rival Sanofi Synthelabo (NYSE:SNY - News) SA .