Novartis splits pharmaceuticals business into two

Published: 19-May-2016

Swiss firm makes management changes as it separates cancer business from other pharmaceuticals


Novartis is splitting its pharmaceuticals division into two business units, one focused on oncology and the second on other pharmaceuticals, while also making senior management changes.

David Epstein, currently the US Head of Novartis Pharmaceuticals, will leave the Swiss drugmaker to 'explore new challenges from the US,' Novartis said.

These business units will form the Innovative Medicines Division at Novartis. The leader of each business will join the Executive Committee of Novartis (ECN) on 1 July.

Paul Hudson, currently EVP, North America at AstraZeneca, will become CEO, Novartis Pharmaceuticals, with Bruno Strigini, who joined Novartis in 2014 from Merck & Co, as CEO, Novartis Oncology, which includes the oncology and cell and gene therapies businesses. Both will be based in Basel, Switzerland and report to Joseph Jimenez, CEO of Novartis.

'Novartis expects this change to help drive its growth and innovation strategy, with an increased focus and improved execution for both the Novartis Oncology and Novartis Pharmaceuticals business units,' the firm said.

'The new structure reflects the importance of oncology to the firm following the successful integration of the oncology assets acquired from GSK,' Novartis added.

From 1 July Novartis will continue to have three divisions: Innovative Medicines (formerly Novartis Pharmaceuticals), which will include the Novartis Pharmaceuticals and Novartis Oncology business units; Sandoz, the generics and biosimilar division, which includes the Retail Generics, Anti-Infectives and Biopharmaceuticals franchises; and Alcon, the eye care devices division, which includes the Surgical and Vision Care franchises. The divisions will be supported by Novartis Institutes for BioMedical Research, Global Drug Development and Novartis Operations, which includes Technical Operations and Novartis Business Services.

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