Novartis drastic change: Establishing a chief strategy and growth officer, restructuring will affect thousands of employees?

Novartis' structural adjustment has the latest moves, new recruits and layoffs

On April 26, Novartis announced the creation of a new position, chief strategy and growth officer, and the hiring of Ronny Gal, a former Sanford Bernstein analyst, to the role, effective August 1 at the latest

Then, on April 27, another foreign media revealed that it had received an email reply from Novartis that Novartis’ restructuring and adjustment would affect thousands of positions

And Novartis' current achievements in innovative drugs are also inseparable from the adjustments made by its continuous focus on research and development

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Subsequently, foreign media reported that as part of the restructuring plan, Novartis will lay off thousands of jobs worldwide

For the newly created position of chief strategy and growth officer, Novartis said in a previous conference call on the restructuring plan that the chief strategy and growth officer will oversee the company's strategy team, portfolio strategy and analysis team, strategic competitive intelligence team and integrated BD team.

According to the reorganization plan previously published on Novartis' official website, the core of this reorganization is to merge the two business divisions of pharmaceuticals and oncology into one innovative medicine division (IM, Innovative Medicines), and to create two independent US and international divisions according to geographic regions.

Novartis believes that this move will better improve the company's focus, enhance competitiveness and drive synergies.

In addition, Novartis also announced the integration of strategy, R&D portfolio strategy and business development, the establishment of new strategy and growth functions; the merger of the original technology operations and customer and technology solutions departments to create new operations

In addition to hiring analyst Ronny Gal as chief strategy and growth officer, Novartis has also appointed heads of the two new divisions, and Marie-France Tschudin, current president of Novartis Pharmaceuticals, has been appointed president and chief commercial officer (CCO) of Innovative Medicines International; Victor Bulto, head of Novartis Pharmaceuticals USA, has been named President of Innovative Medicines USA, both reporting directly to Vas Narasimhan

In addition, in this restructuring plan, Novartis did not disclose the whereabouts of Sandoz, but it was clear that Sandoz's fate would be decided within 2022

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Among them, the Novartis pharmaceutical business unit had net sales of $26.

Novartis' achievements today are inseparable from the leadership of its chief executive Vas Narasimhan, who has been keen to transform since taking office in 2018, pushing Novartis to focus more on the pharmaceutical business
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Vas Narasimhan, an MD-turned-clinician, was Novartis' global head of development before becoming CEO of Novartis.
He was appointed CEO in 2017 to lead the company to focus more on Research and development of innovative drugs
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In February 2018, Vas Narasimhan officially became the global CEO of Novartis.
In March of the same year, Novartis and GSK jointly announced that Novartis would sell its 36.
5% stake in the consumer healthcare joint venture to GSK for US$13 billion
.
Then in June of the same year, it announced plans to spin off all of Alcon's eye care device businesses
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In April 2019, Novartis divested its ophthalmology business Alcon for a total of CHF 28 billion
.

By 2021, changes to Sandoz's generics business also put Vas Narasimhan on the job list
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In October last year, Novartis announced its third quarterly report for 2021, achieving net sales of US$13.
03 billion, a year-on-year increase of 5%.
Among them, the net sales of the innovative drug business was US$10.
628 billion, an increase of 8% year-on-year, but Novartis’ generic drug business (Shand) 2.
402 billion US dollars in net sales, down 2% year-on-year
.
At the same time, Novartis also expects that Sandoz's generic drug business sales will decline in the mid-single digits in the future
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Novartis said it was considering a sale or spin-off of its generics business Sandoz
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At the time, Vas Narasimhan said that Novartis had long wanted to make Sandoz "more autonomous", including in terms of production, and that the process was now deep enough to start a strategic review
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"It's synergies and freedom and the ability to allocate capital, of course, all those considerations are going to be taking place now," Narasimhan said, with more details to be reviewed by the end of 2022
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On April 26, Novartis released its first-quarter results, with net sales of approximately US$12.
5 billion, an increase of 5% year-on-year, of which the sales of the innovative medicine business unit (IM) were approximately US$10.
2 billion, an increase of 4%, mainly due to Entresto, Growth in key products such as Kesimpta, Cosentyx and Zolgensma was strong; Sandoz had sales of about $2.
4 billion, up 8%, but mainly due to a severe decline in the same period last year due to the impact of the new crown epidemic
.

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