Novartis AG (NVS) said on Monday that it has introducing a new organizational operating structure to make it more competent.
As part of it, the Swiss pharma major plans to integrate the Pharmaceuticals and Oncology business units to create two separate commercial organizations- Innovative Medicines US and Innovative Medicines International with a more geographic focus.
The move is expected to help Novartis to focus more on its major therapeutic areas of Cardiovascular, Hematology, Solid Tumors, Immunology, and Neuroscience.
The company expects SG&A savings of at least $1 billion which to be "fully embedded by 2024." It also projects a value creation through these operational up gradation, ensuring at least 4 percent sales growth.
Vas Narasimhan, CEO of Novartis, said: "…With our portfolio of in-market medicines and up to 20 major pipeline assets that could be approved by 2026, Novartis is in a strong position to deliver above-peer-median sales and margin growth in the mid- and long-term."
Novartis will also unite its Technical Operations and Customer & Technology Solutions units to form a new Operations unit.
In addition, all G&A functions-Finance, People & Organization, Ethics, Risk & Compliance, Legal, and Communications & Engagement will be integrated on global and country levels.
In another move, Novartis has appointed Shreeram Aradhye, as President, Global Drug Development and Chief Medical Officer with effect from May 16.
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