Novartis Said to Be Mulling a Jobs Shift to India

In a move designed to enhance its presence in India, Novartis plans to build a new business center in Hyderabad, India. However, talking to the news agency Reuters. the Swiss pharmaceutical giant disputed reports in the Swiss newspaper Neue Züricher Zeitung that it was planning to cut up to 4,000 jobs or transfer them to other locations.

Citing an internal email, the newspaper said the cost-cutting plan could affect as much as 6% of the company's pharmaceuticals workforce. To dispel rumors, Novartis spokesman issued a statement to news agencies, contending that while it intends to "prioritize and reallocate resources, primarily in pharmaceuticals, to focus on planned product launches and other growth areas," the workforce would remain flat in 2014

Novartis said the measures "reflect the need to respond to a dynamically changing healthcare environment."

Reports have suggested that, despite this, a significant number of Novartis jobs could be moved to India. "The new center is expected to open in late 2015 or early 2016 and will bring together Novartis operations that are currently spread across three sites in Hyderabad as well as provide for future growth," Reuters said, quoting the company.
The Swiss drugmaker, like many of its rivals, is facing intensive competition from lower cost pharmaceutical companies in India, the world's 15th largest drug market. To fight India's circumventing of patent protection, Switzerland is negotiating a free trade agreement with the country, but observers say it has not made much progress.
Novartis meanwhile appears to be moving closer to a sale of its over-the-counter, animal health and vaccines businesses as it prepares to focus on its core businesses of pharmaceuticals, eye care and generics. While the two units initially were planned to be sold together, the news agency Bloomberg has quoted anonymous sources as saying that vaccines may now be sold separately.

The agency said it has learned that Novartis has informally talked to both Eli Lilly and Bayer about the animal-health business even as it continues negotiations with U.S. Merck about a package deal for animal health and vaccines.