Novartis plans to restructure its U.S. operations. According to a company email sent to employees by David Epstein, head of Novartis Pharmaceuticals, the restructuring is in response to a changing environment and is an effort to innovate the company’s product portfolio over the next several years. According to the email, four new business units will be created, Primary Care, Multiple Sclerosis, Psychiatry/Neuroscience and Respiratory/Transplant/Infectious Disease. The changes take effect May 1 and impact approximately 250 employees, for which the company plans to provide severance packages, out-placement services, and possibly redeployment opportunities. The company also plans to cut an additional 383 positions, mostly in headquarters.

Based on assessments made by the U.S. 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 operate under one new head of Primary Care, Brian Goff. He will be responsible for Primary Care Marketing and Patient Services & Mature Products and reports 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.

The company is replacing 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. Also, the company plans to add approximately 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.

Additionally, 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, the company 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.