• by Steve McClellan  @mp_mcclellan, October 11, 2011

Drug giant Novartis has narrowed the contenders in its ongoing global media agency review to two finalists, according to sources. 

The two agencies are the incumbent MEC, a unit of WPP, and Publicis Groupe’s Starcom. Recently eliminated from contention was Interpublic’s Initiative.

A decision is now expected in early November, per sources. The pitches have largely been presented and discussions are now said to focus on costs of media and compensation, per sources. 

The client currently spends approximately $600 million on ads worldwide, down from a high of $950 million that the drug marketer allocated just a few years ago, according to sources.

In the U.S., the company spent $265 million on ads in 2009 and $165 million in 2010, according to Nielsen. Those figures exclude digital expenditures.

Novartis manufactures over-the-counter remedies, such as Excedrin headache tablets and cold-and-flu remedy Theraflu, as well as prescription drugs such as Diovan HCT for high blood pressure.

The company reported net sales of more than $50.6 billion in its 2010 annual report, up 14% from the previous year.

The current review was launched six months ago and has taken significantly longer than expected. according to sources. Initially, contenders were led to believe the process would take about three months. Reasons for the delay were not clear.

The agencies declined to comment or did not return calls. Responding to an email query, a spokeswoman for Novartis replied that “we regularly evaluate suppliers, but have made no decision to change our media agency relationship at this time.”