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news.Novartis plans to restructure US operations in response to a changing environment and to innovate the company’s product portfolio over the next several years, reported Contract Pharma citing a company email sent to employees by David Epstein, head of Novartis.
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Reportedly, four new business units will be created namely Primary Care, Multiple Sclerosis, Psychiatry/Neuroscience and respiratory/Transplant/Infectious Disease.
The changes will be implemented from May 1 and impact approximately 250 employees, for which Novartis plans to provide severance packages, out-placement services and possibly redeployment opportunities. Novartis also plans to lay off an extra 383 positions, primarily in headquarters.
Depending on the evaluations made by the US leadership team, organizational changes will be made in an effort to deliver stronger results. These changes are aimed at maximizing the company’s portfolio, aligning all functions with the company’s new commercial model, and reducing costs.
The Primary Care Operating Units (OUs) will be reduced from five to four and will be operated under one new head Brian Goff, who will manage Primary Care Marketing and Patient Services & Mature Products and will report to the head of Pharma North America and president of NPC.
Jeff Bailey (Northwest OU), Christopher Kaplan (Northeast OU), Gary Menichini (Southwest OU), Gerry Melillo (Southeast OU) and Cynthia Hogan (Mature Products & Patient Services) will remain part of the Commercial Executive Committee (CEC) and will report to Mr Goff.
Novartis has also decided to replace its Specialty Medicines OU with three new business units: Multiple Sclerosis, Psychiatry/Neuroscience, and Respiratory/Transplant/ID. Each unit will report to the head of Pharma North America and president of NPC.
Dagmar Rosa-Bjorkeson will lead the expanded MS Unit. The company also intends to add nearly 160 associates to this unit in preparation for the Gilenia launch. Lisa Pilla will be responsible for the Psychiatry/Neuroscience Business Unit and Jesus Leal will lead the new Respiratory/Transplant/ID Business Unit.
Furthermore, Novartis will combine New Products and the Business Development and Licensing Group under Carol Lynch, who will report to the head of Pharma North America and president of NPC.
Under the leadership of John Orloff, Novartis will align medical and commercial, and adapt its medical structure to the new operating model. Field Medical will go from five to four OUs. In headquarters, Primary Care and Specialty MS&A groups will realign into the four new therapeutic Medical Units, which will report to Medical and coordinate with the business unit heads.