Ed Silverman at Pharmalot alerted me to this tidbit. Daniel Vasella, CEO of the Swiss drug maker Novartis AG, mentioned in an interview with The Wall Street Journal that he is planning a companywide restructuring aimed at reducing “layers of management and bureaucracy—following through on reorganization comments he made several months ago.
Novartis, plans to disclose more about its restructuring plans by mid-month and elaborate further in February, adding that the restructuring will involve some job cuts, but Vasella declined to say how many. In an October briefing for analysts, Novartis executives said there would be 240 jobs cut in US headquarter functions Hanover, NJ) and 510 sales reps and 510 contracted rep positions eliminated, for savings of $230 million.
Novartis is one of several big drugmakers to cutback - AstraZeneca, Pfizer, Bristol-Myers Squibb, Glaxo and Johnson & Johnson have all announced layoffs in the past year. And Merck and Wyeth continue to trim selectively as part of ongoing savings programs.
According to the Journal, the changes at Novartis will follow recent management changes and comes after a tough year for Novartis. The drugmaker, faced generic competition on some of its
biggest drugs and failed to gain FDA approval for two new products–including the anti-diabetes drug Galvus (vildagliptin) which was predicted to be a blockbuster. Earlier this year, it also was forced to withdraw from the US and Swiss markets its drug for irritable-bowel syndrome, Zelnorm, after safety concerns.
One new rule Vasella has set: There should be no more than six layers of employees in any Novartis division, from the lowest-ranking person up to the division head. Novartis has four divisions: pharmaceuticals, generics (Sandoz), vaccines and diagnostics, and consumer health, which includes over-the-counter medicines.
Vasella says he realized the pharma division, in particular, was bogged down with bureaucracy after he had recent lunch with a group of its employees. The reorganization will also cut costs from Novartis’s procurement activities. One area that will come under particular scrutiny: the use of third-party CROs to oversee Novartis’s clinical trials which has been extremely costly for the Company.
Until next time....
Good Luck and Good Job Hunting (China and India?)!!!!!!