Novartis changes pharma management after weak third quarter
pharmafile | October 19, 2007 | News story | Sales and Marketing |Â Â NovartisÂ
Novartis has switched the heads of its consumer and pharmaceuticals divisions as part of a wider reorganisation of its pharma division.
There will also be changes in R&D and US job cuts after a weak third quarter in which pharma sales fell by 2% because of generic competition and the loss of Zelnorm.
Former head of Novartis Consumer Health Jim Jimenez will become chief executive of Novartis Pharma and Thomas Ebeling, who previously held the position, will head up the consumer business.
Novartis said Jimenez's new responsibility will be that of 'transforming Pharmaceuticals as the business adapts to new market conditions'.
Jimenez has only been with the company since April this year, having previously spent five years as a non-executive director at AstraZeneca and served as an advisor to private equity organisation Blackstone Group.
Chief executive Dr Daniel Vasella commented: "The announced changes at the divisional leadership level will not just broaden management experience but also bring fresh impetus and efficiency after a long and strong growth period."
In the US the company will cut headquarters staff by 240 and its sales force by approximately 510 Novartis and 510 third-party representatives, the majority of the reductions will be carried out by not filling vacant positions.
The company hopes to save approximately $230 million through the initiative in 2008.
Novartis will also reorganise its Development function and establish a new Novartis Biologics unit to accelerate R&D in the area.
Double-digit pharma sales growth for Diovan and Glivec was not enough to offset losses from irritable bowel syndrome treatment Zelnorm, which was pulled from the market in April, and US generic competition for Lotrel, Lamisil and Famvir.
Third quarter pharma sales fell by 2% in local currencies to $5.9 billion, but chief executive Dr Daniel Vasella said the weak quarterly figures in pharma were expected and had been at least partially balanced out by strong performance from Novartis vaccines, diagnostics and generic businesses.
"After losing several products to generics, Pharmaceuticals succeeded in launching many new medicines, including Lucentis, Exforge, Tekturna/Rasilez, Exelon Patch, Tasigna, Galvus and Aclasta/Reclast, creating the foundation for a new growth phase that will be visible starting in the second half of 2008," he said.
"Our overall objective to bring new medicines to patients is reflected in the 14 positive US and European regulatory decisions already received in 2007."
Related news:
Novartis' Zelnorm pulled from market after safety concerns
Monday , April 02, 2007
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