Novartis lays off more than a tenth of its employees in Switzerland: the Basel pharmaceutical giant will in fact eliminate 1,400 jobs out of a total of 11,600 in the Confederation. Worldwide they will be cancelled 
8,000 jobs out of a total of 108,000.
A Novartis spokesman confirmed to the AWP agency a news to this effect published by the Tamedia newspapers. The company's management informed their employees for the first time today in detail about the restructuring announced at the beginning of April. All offices are affected by the staff cut, the newspapers report.
The goal of the reorganization is to reduce costs by at least one billion dollars by 2024. The Rhine group intends in particular to merge the two units "Innovative pharmaceutical products" and "Oncology". At the same time it creates a new “Strategy and Growth” division.
In addition to adapting the organizational structures, Novartis is also streamlining its global functions in the areas of finance and human resources, in the legal sector and in communication: according to the spokesperson, thus disappearing jobs throughout the company. "In implementing these changes throughout the organization - he explained - Novartis is advancing rapidly and has already concluded the appointment of most of the management teams at a global level".
The group is aware of the effects of these changes on employees and ensures that all consultation requirements are met, if necessary through employee representative bodies, the spokesperson added. In Switzerland, formal consultations are ongoing with employee representatives as well as consultations with the management of the sectors concerned.
Note: The main change is the integration of the Pharmaceuticals and Oncology business units and the creation of two separate commercial organizations with a stronger geographic focus: Innovative Medicines US and Innovative Medicines International.
The new feature Strategy & Growth combines corporate strategy, R&D portfolio strategy, and business development to further strengthen the pipeline with high-value medicines through internal and external opportunities. The unit Operations combines Novartis Technical Operations and Customer & Technology Solutions units to generate economies of scale, increase productivity and create a strong technological and operational foundation.
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Novartis: first quarter according to forecasts
The Basel-based pharmaceutical giant Novartis recorded revenues of 12.53 billion dollars (12.02 billion francs) in the first three months of the year, a very slight increase (+1.0%) on an annual basis.
The main business, ie original medicines (Innovative Medicines), recorded an increase of 0.7% to 10.18 billion, while generics and biosimilars (Sandoz) increased by 2.1% to 2.36 billion.
Basic operating profit (Ebit) increased by 3.2% to 4.08 billion, indicated a note from the group released this morning. Basic net income, on the other hand, fell by 4.7% to 3.25 billion. The underlying results are adjusted eg for the influence of acquisition-related factors.
The performance is broadly in line with the projections of analysts consulted by the AWP financial news agency, which forecast on average revenue of 12.57 billion, basic EBIT of 4.08 billion and adjusted net profit of 3.21 billion. Innovative Medicines' revenues disappointed a bit, while Sandoz was a positive surprise.
Management reiterates its objectives for the current year: growth and core Ebit should progress by approximately 5%.
Novartis Achieves Solid Revenue and Earnings Growth.
THE CASES OF NOVARTIS
CEO Narasimhan, writes Reuters, “is looking to boost its performance credentials as the Swiss drugmaker is receiving huge cash gains, including $20.7 billion last year from the sale of its 33% stake in Roche to Swiss rival, and from a possible sale of its Sandoz unit, a maker of low-cost generics.
In this regard, Novartis has stated that it intends to complete the Sandoz review before the end of the year.
Revenues that, especially with regard to the sale of Roche shares, according to what he writes TagesAnzeiger, would allow Novartis to "swim in gold" and "cost reduction exercises would not really be necessary".
However, the Swiss newspaper states that "Novartis is under pressure because it has to convince the stock market with new high-turnover drugs".
Currently, second Drug discovery trendsNovartis has relatively few megablockbuster drugs. In 2021, plaque psoriasis therapy Cosentyx (secukinumab) brought in $4.7 billion, while multiple sclerosis drug Gilenya (fingolimod) brought in $3.5 billion.
Source Start Magazine
Note: As Chief Executive Officer and Member of the Executive Committee of Novartis AG, the total compensation of Vasant Narasimhan at Novartis AG is $ 11,437,500. (source Wallmine). In 2020, his total compensation was valued at approximately $11.24 million. Compensation included base salary and shares, pension and additional expenses. From the Novartis reports:
