CNN -- FORTUNE -- Swiss drug maker Novartis AG is facing tough competition from generics as several of its key drugs -- namely, bestseller Diovan for hypertension -- begin to lose patent protection in 2012. Profits fell during the last two consecutive quarters as sales of influenza declined following the end of the flu pandemic and as the company purchased its remaining stake in eye care company Alcon. Despite this, Novartis is planning for long-term growth from its investments in emerging markets and its focus on research efforts on rare diseases. It is banking big on overseas markets -- particularly China, where government officials plan to reform its health care system and widen insurance coverage to include many more of China’s hundreds of millions of rural residents.
