SWITZERLAND –Novartis has announced a new organizational structure and operating model with the goal of achieving US$1 billion in cost savings by 2024, as well as changes in executive leadership to support the new structure.
The company intends to combine its Pharmaceuticals and Oncology business units into an Innovative business to form two distinct commercial organizations, Innovative Medicines US and Innovative Medicines International.
The two units will be responsible for full profit and loss across all therapeutic areas, as well as customer experience, marketing and sales, and market access in their respective markets.
The new model will help the company’s core therapeutic areas, which include cardiovascular, hematology, solid tumors, immunology, and neuroscience.
Marie-France Tschudin, currently President of Novartis Pharmaceuticals, will become President and Chief Commercial Officer of Innovative Medicines International.
As Chief Commercial Officer, she will be responsible for global marketing, medical affairs, and value and access across all therapeutic areas.
Victor Bulto, currently the President of US Pharmaceuticals, will be named President of Innovative Medicines US. Effective immediately, they will both report to Novartis CEO Vas Narasimhan (as reported on April 4, 2022).
Strategy and growth focus
In addition, Novartis will establish a new Strategy & Growth function that will combine corporate strategy, R&D portfolio strategy, and business development.
This new function will be led by a Chief Strategy & Growth Officer, who will join Novartis’ Executive Committee and report directly to the CEO.
The search for this new leader is currently underway, and in the meantime, the function will be led by Lutz Hegemann, M.D., Ph.D., President, Global Health.
Operations
In addition, the company will merge its Technical Operations and Customer & Technology Solutions divisions to form a new Operations division.
This new unit will serve as an operational backbone for multiple technology transformation initiatives, as well as for the creation of digital solutions at scale and increased productivity.
Steffen Lang, currently Global Head of Novartis Technical Operations, will become President, Operations and report to Novartis CEO Vas Narasimhan, effective immediately (as reported on April 4, 2022).
Furthermore, on a global and country level, all general and administrative functions—Finance, People & Organization, Ethics, Risk & Compliance, Legal, and Communications & Engagement—will be integrated.
Global drug development
Also, the company announced changes to its global drug-development leadership. Shreeram Aradhye, M.D., has been named President, Global Drug Development and Chief Medical Officer of Novartis, effective May 16, 2022.
Dr. Aradhye, who is returning to Novartis, was most recently Executive Vice President and Chief Medical Officer at Dicerna Pharmaceuticals, where he was responsible for the development of multiple clinical stage RNAi assets.
He was previously Chief Development Officer at Axcella Health. During his 20-year career at Novartis, he held several global leadership positions, including development head for the Neuroscience franchise and Global Head of Medical Affairs for the Pharmaceuticals business unit.
He will report to Novartis CEO Vas Narasimhan and will be a member of the Novartis Executive Committee.
As a result of the changes in organizational structure and operating model, John Tsai, M.D., currently the President of Global Drug Development and Chief Medical Officer at Novartis, has decided to pursue opportunities outside of Novartis, effective May 15, 2022.
Novartis expects to create value through operational improvements and to achieve at least 4% sales growth (compound annual growth rate in 2020–2026) and margins in the high 30s in its Innovative Medicines business in the medium term, and 40%+ in the mid- to long-term.
Liked this article? Sign up to receive our regular email newsletters, focused on Africa and World’s healthcare industry, directly into your inbox. SUBSCRIBE HERE
