novartis has done it with its drug. we are joined now by the ceo of novartis.u for having me. liz: i must ask you about the news that novartis is being investigated on a federal level in the united states for marketing drugs to iran. i need you to clarify what is going on here. >> yes, we were contacted by the u.s. attorney in texas. it was not novartis. actually, it was from an event that occurred in 2005. it really is as far as i would go. we are cooperating fully with the u.s. attorney and helping him continue with his investigation. liz: can you confidently say that your units do not market drugs to band nations. >> that is absolutely correct. remember, you are talking about medicine, sometimes life-saving. there is a protocol to which you would potentially market to any country in the world because of the life-saving nature because of some of our drugs to which we would fully comply. liz: in 2013, or at least at the end of 2013, we will not be seeing that fails. >> as we exit the 2013 year, we are entering a new growth phase. that is for three reasons. we

>> my message to jack, as well as what novartis said to the president is to get on to -- what i have already said to the president is to get on with solving the fiscal cliff issue. there are some big deadline's coming up in march between sequestration and the budget resolution as well as the bigger issue around the debt ceiling. and then we need to get to the longer-term issues in terms of where america is going, and that starts with tax reform as well as immigration issues and infrastructure issues. >> i hear the same message from business people across the country. we need more certainty from washington if we're going to kick start growth in this economy. is washington helping or hindering in a bid to bring unemployment down in the country? >> being the optimist that i am, i say washington is attempting to help. what was passed at the end of the calendar year was a good first start. but there's a lot more that needs to be done. they are helping. if we can get past some of the partisanship and get into citizenship, we can move along a lot more quickly. businesses are frustrated. >>

i am novartis. and i am 5 milligrams. i am-no. 12 and tell no. 2. that is the data that we collect. >> how you get that into this? >> it is a digital platform. essentially, the way it works is when you swallow it and turn it on, it will send a signal. we program it so that on is one hand off is zero. you have a 64-bit string. that is the data stream. >> where did you come up with this idea? >> we are very lucky company. we have a team of incredibly smart scientist and the development engineers to work with us. probably the most important is our chief technology officer. he is one of the first people in the field. we have a team led by mark and others now who have built this technology. it has been custom designed to solve what we think is one of the most important problems in this area, which is how to solve the problem with the massive qana issue of chronic disease. >> and how do you solve this? >> moving away from technology and what i call the problem statement that we started with 10 years ago as a company, we do not have a health care system. w

so the pill is going to say, hello, i'm here, i'm novartis, i'm five milligrams, i'm batch number 12, and i'm pill number two. that's the data we collect. >> host: and how do you get that data into this? >> guest: so it's a digital platform, essentially the way it works is when you swallow it and turn it on, it's going to start to send a signal, and we program it so that on is one and off is zero. if you go on/off 64 times, you've got a 64-bit stream. that's the data stream. >> host: how -- where do you come up with this idea? >> guest: so we're a very lucky companiful we have of a whole team of incredibly smart scientists and development engineers who work with us. most important is our co-founder martha lev lick who is one of the first people in a field of men to develop the canty lever microphone so we have a team led by mark who built this technology, and it's been custom designed to solve one of the most important problems in health care which is how we solve the problem associate with the the massive burden of chronic disease. >> host: and how does this help? >> guest: so let's

novartis rallying up, up 3% after earnings. same for unilever which are trailing as results have pleased investors. let's take a quick look at 4x before we hand it back to davos. there's the swiss for the exchange rate, anyone traveling from the u.s. to the forum, down .1% this morning. the dollar/yen, an interesting one to watch. the yen strengthening again against the dollar. closer to 88, giving up more than .3% after a big move yesterday, continuing on the heels of the bank of japan's policy decision to pursue unlimited quantitative easing to hit a 2% inflation target. questions about how and when they'll get there remain in markets. the euro/dollar, .1% higher. the sterling, .2% stronger. the bank of england out in minutes saying the current account deficit would suggest it should be weaker. selfishly i agree. >>> almost half the world's iron ore has been at a standstill. a tropical storm has intensified to a category 1 cyclone and brought shutters down on rio, bhp, and more iron ore ports. offshore oil production has been

she will speak with cantor fitzgerald ceo, howard lutnick and prime minister of haiti and ceo of novartisnting forecast, just now analysts are cutting their targets. that is up next. we have one that actually downgraded his rating a week ago. find out why and what his biggest concerns at this point are. ♪ sandra: apple's first quarter earnings report disappointed investors triggering more than 15 analysts to downgrade the stock. we have now got an analyst who was ahead of the game. he cut his rating last week. david: what did he say that other analysts missed? andy hargrave, pacific crest securities senior research analyst. congrats, to you, andy. i have to throw out reverse kudos to people like jeffries. they cut the price target to 500 from 800. socgen doing same thing. deutsche bank. this is not some little stock where you see the dramatic ups and downs. this is the biggest, used to be until today, was the biggest stock in the world. how can you have one day to the other 0% price target drop? where were these analysts? >> you will have to ask them that. david: i mean, let me refine tha

>> my message to jack, as well as what novartis said to the president is to get on to -- what i have is to get on with solving the fiscal cliff issue. there are some big deadline's coming up in march between sequestration and the budget resolution as well as the bigger issue around the debt ceiling. and then we need to get to the longer-term issues in terms of where america is going, and that starts with tax reform as well as immigration issues and infrastructure issues. >> i hear the same message from business people across the country. we need more certainty from washington if we're going to kick start growth in this economy. is washington helping or hindering in a bid to bring unemployment down in the country? >> being the optimist that i am, i say washington is attempting to help. what was passed at the end of the calendar year was a good first start. but there's a lot more that needs to be done. they are helping. if we can get past some of the partisanship and get into citizenship, we can move along a lot more quickly. businesses are frustrated. >> what are the bigger things you

this is in stark contrast to what we heard from novartis last week which guided for lower profits this year. that's specific to the patent expiring of one of its most important drugs. what we're seeing in roche this morning, to a large extent, is profit-taking. back to you. >> carolyn, just a quick followup question. yesterday we heard from pfizer, eli lilly in the u.s. and generally speaking, a lot of companies are trying to convince the public that there are drugs in the pipeline, that they're going to be able to come out with the next blockbuster. are investors still buying it? >> i think in the case of roche, they certainly are. roche told us this morning that it's got high hopes for its breast cancer franchise. and the drug pipeline related to that. let me tell you that one of its drugs, progeta, has a 30% market share in the u.s. sales have done very, very well in the last couple of quarters. in fact, it's only been on the market for two quarters. there's another drug called tdm-1. it is expected to be launched over the next couple of quarters. so yes, in terms of roche, the pipe

novartis is up. the chairman leaves. so maybe something good happens there. parker reported one of the most disappointing quarters on friday. everything was bad. everything. the stock went up. this is just part of the animal spirit's moment. you get caught up and say, all right, i'm going to find a reason to justify buying mcdonald's. i'm going to say that i'm not going to look through it. they beat the number. and that's what's been going on. >> yeah. >> people find reasons to buy. because they want to be in this market. >> that's a reflection more of the market itself. >> that's my point. >> at what point does that potentially end, or is that something that's going to be sustainable? >> go into some of the quarters and say, look, don't worry about the second half. dupont yesterday wasn't that great. but the top number was good. like mcdonald's. she came on, ann coleman, said good things about the second half, tio margins bottoming. all of a sudden you've got a story. if somebody downgraded dupont today, people might say, that's my opportunity. people want t

daniel vasella who is the chairman of novartis explains that in america, no one has incentives to make and cost-effective outcomes the goal, end quote. france and britain gave their health care providers incentives to focus on early defection and cost-effective treatment that make wellness the goal, not treatment. to paraphrase george washington university professor thomas j.schoenbaum, make virtue profitable and everyone becomes a saint. saving money by reforming how we deliver health care isn't just possible, it is happening. a 2008 report from the dartmouth atlas project predicted that, and i will quote -- "using the mayo clinic as a benchmark, the nation could reduce health care spending by as much as 30% for acute and chronic illnesses a benchmark based on intermountain health care -- based out in utah -- predicts a reduction of more than 40%." so we're doing it. it's happening. we just need to spread it more widely. during a 2011 senate help hearing that i chaired, greg p polson said, "i. intermountain and other organizations have shown that improving qualit is compatible with lo