According to the company, the new model is designed to be more effective at driving sales growth by better meeting the diverse needs of multiple customers as well as a more efficient deployment of resources. Five new regional units will be created that have cross-functional responsibility for the full primary care product portfolio, replacing the nationally managed sales forces.
About 550 full-time equivalent positions in the US sales force organization are planned to be reduced in a socially responsible manner, with more than half of the reductions planned from not filling already vacant positions. The new organization will start on January 1, 2009.
Novartis has appointed Joerg Reinhardt as the new COO, reporting to Daniel Vasella, chairman and CEO. The company has also appointed Andrin Oswald, currently CEO of Speedel and global head of pharmaceutical development franchises, as head of vaccines and diagnostics.
Furthermore, the board has appointed George Gunn as the new head of consumer health in addition to his current role as head of the animal health business unit. He will replace Thomas Ebeling, who has decided to pursue his career outside the company. Andreas Rummelt will assume the newly created position of group head of quality assurance and technical operations and will remain a member of the executive committee of Novartis.
Jeff George, currently head of emerging markets in the pharmaceuticals division, will replace him as the new head of Sandoz. In addition to his role as head of the oncology business unit in the pharmaceuticals division, David Epstein will also lead a new unit focusing on innovative molecular diagnostics. These changes will become effective on December 1, 2008.
The board of directors and Dr Vasella have also reached an agreement on the terms of a new contract extending his current position as chairman and CEO of Novartis.