The new model will also help bring increased focus and commitment to its core therapeutic areas of cardiovascular, hematology, solid tumors, immunology and neuroscience the Basel-based drugmaker said.

The two global units will have full profit and loss responsibility across all therapeutic areas and ownership of customer experience, marketing and sales, and market access for their respective markets. The company expects to achieve selling, general and administrative (G&A) savings of at least $1 billion to by 2024 as a result of the reorganization.

Through elevation and establishment of an independent US commercial organization, Novartis said it will be able to quickly achieve its goal of becoming a top-five company in the United States in terms of sales while maintaining and growing its leadership position internationally.

Overall, the focus will be on strengthening the pipeline. A new strategy and growth function, to be led by a still to be appointed chief strategy & growth officer, will combine corporate strategy and R&D, while a new operations unit will link technical operations and customer & technology solutions units. G & A functions are planned to be globally integrated.

Value creation through the operational improvements should ensure at least 4% sales growth in constant currency through 2026, Novartis believes. It also expects to deliver at the high end of its IM margin guidance of “high 30s” in the medium term and 40% or more in the mid- to long-term.

“The simpler organizational model is central to Novartis’ growth strategy as it will make us more agile and competitive, enhance patient and customer orientation, unlock significant potential in our R&D pipeline and drive value-creation through operational efficiencies,” said CEO Vas Narasimhan. 

With its portfolio of in-market medicines and up to 20 major pipeline assets that could be approved by 2026, the company is in a strong position to deliver above-peer-median sales and margin growth in the mid- and long-term,” he added.

Marie-France Tschudin has been named president and chief commercial officer of Innovative Medicines International and Victor Bulto as IM president in the US.  Steffen Lang will serve as president of operations and Shreeram Aradhye – who is returning to Novartis after executive stints at other drugmakers –will be president of global drug development and chief medical officer.

Susanne Schaffert, president, oncology, Robert Weltevreden, president, customer & technology solutions and John Tsai, president, global drug development and chief medical officer, will leave the company.

Author: Dede Williams, Freelance Journalist