Bliston Asset Management believes that pharmaceuticals giant Novartis AG (NOV) is ideally positioned to generate escalating revenues over an extended period driven by a combined effort of a developing drug portfolio and acquisition transactions recently executed by the Swiss based company.

Bliston Asset Management’s Director of Research addressed investors at the firm’s Hong Kong based office and provided the rationale behind the wealth management provider’s bullish approach.

“Since 2011 Novartis has experienced a period of product sales decline as a result of a patent expiration on Diovan, which proved to be the company’s leading product for a decade or so. In fact our analysis shows that since the patent expired generic competition forced a decline in corporate revenues to the tune of $4 billion a year. ”

“It is fair to say that performance in other areas of the business have also contributed to Novartis’ troubles. What with a year on year decline of sales in fiscal year 2012, nominal sales growth of 2.2% in 2013 and stagnant growth during 2014, the company has approached 2015 with an uphill task to turn around the fortunes for investors as it faces further challenges in the form of patent expirations in the US and European Union.”

However, after weathering a difficult period, Novartis has developed partnerships with GlaxoSmithKline (GSK) as the two companies piggyback off each others core-competencies in a deal that opens the door for Novartis to utilize its expertise in oncology to develop GSK’s cancer-related products.

“By partnering with GlaxoSmithKline, Novartis have gained additional exposure to the cancer treatment market, which is estimated to be a market worth $110 billion annually. The partnership has combine to produce a cancer treatment portfolio of 22 active products with a further 25 under development. Considering Novatis’ expertise in this area the company expects at least three bestsellers to be developed from their new found portfolio,” continued Bliston’s Director of Research.

As a company that has historically been R&D aggressive, Novartis has continued to innovate earning the company 17 major approvals in 2012 and 18 the following year, raising expectations within the company that the pipeline of products will be the driving force to boost its sluggish sales performance as it positions itself to report double digit revenue and earnings growth into the foreseeable future.