Novartis announces new organizational structure

The Basel-based company will integrate its pharmaceutical and oncology business units; create a new business unit; and create a new strategy and growth function.

The company claims that such operational improvements will ensure sales growth of at least 4% (CAGR 2020-2026); as well as create SG&A savings of at least $1 billion by 2024.

“The simpler organizational model we are unveiling is central to our growth strategy as it will make us more agile and competitive, improve patient and customer focus, unlock significant potential in our R&D pipeline and drive value creation through to operational efficiency,​ said Vas Narasimhan, CEO of Novartis. “With our pipeline of drugs to market and up to 20 major pipeline assets that could be approved by 2026, Novartis is in a strong position to achieve above-median sales and margin growth of its mid-to-mid peers. and long term.

Three top executives are leaving the company, including Susanne Schaffert, president, Novartis Oncology, Robert Weltevreden, president, customer and technology solutions, and John Tsai, president, global drug development and chief medical officer.

Integration of pharmaceutical and oncology business units

Novartis said it will integrate the pharmaceutical and oncology business units and create two separate business organizations with stronger geographic focus, trained in US and international markets.

Both units will have full responsibility for P&L across all therapeutic areas and will own customer experience, marketing and sales, and market access for their respective markets.

“Elevating and establishing an independent sales organization in the United States strengthens Novartis’ ability to achieve its goal of becoming one of the top five companies in the United States by sales while maintaining and growing its leading position internationally.the company said.

“The new model will also help Novartis focus and engage more in its core therapeutic areas of cardiovascular, hematology, solid tumors, immunology and neurosciences.”

Marie-France Tschudin will serve as Chief Commercial Officer and Head of the International Division, while Victor Bulto, currently Head of the US Pharmaceuticals Unit, will lead the US Unit.

Focused on strategy and growth

The company also said it was creating a new strategy and growth function combining corporate portfolio strategy and R&D with business development. He described how this function will look to internal and external opportunities to strengthen the company’s pipeline with medicines that are both transformational and can make meaningful contributions to growth.

The Swiss group plans to appoint a director of strategy and growth, reporting directly to the CEO, to lead the new function. Lutz Hegemann, president of global health at Novartis, will assume this role on an interim basis.

Operations

Novartis will combine its technical operations and customer and technology solutions units to create a new business unit. Steffen Lang, currently global head of technical operations at Novartis, will become president of this new unit, reporting to the CEO.

The pharmaceutical giant announced alongside these changes that it has rehired Shreeram Aradhye to lead its global drug development team and also to become its chief medical officer, effective May 16, 2022.

Dr. Aradhye was most recently Executive Vice President and Chief Medical Officer at Dicerna Therapeutics, where he led the development of multi-stage RNAi assets.