Novartis introduced a new organizational structure and operating model to integrate its Pharmaceuticals and Oncology business units, and create two separate commercial organizations—Innovative Medicines U.S. and Innovative Medicines International. According to the company, savings of at least $1 billion by 2024 will result from these changes.

 

The two units will have full P&L responsibility across all therapeutic areas, marketing and sales, and market access for their respective markets. The establishment of an independent U.S. commercial organization is part of an effort to become a top-five company in the U.S. in terms of sales while maintaining and growing its leadership position internationally. The new model aims to help Novartis increase its focus and commitment to its core therapeutic areas of Cardiovascular, Hematology, Solid Tumors, Immunology and Neuroscience.

 

Marie-France Tschudin, currently President, Novartis Pharmaceuticals, will become President, Innovative Medicines International and Chief Commercial Officer. She will oversee global marketing, medical affairs and value and access across all therapeutic areas. Victor Bulto, currently Head of US Pharmaceuticals, will become President, Innovative Medicines US. They will both report to Vas Narasimhan effective immediately.

 

Novartis will create a new Strategy & Growth function combining corporate strategy, R&D portfolio strategy and business development, and will look across internal and external opportunities to strengthen its pipeline. This new function will be led by a Chief Strategy & Growth Officer who will become a member of the ECN and report to the CEO. The search is currently underway, and in the interim the function will be led by Lutz Hegemann, M.D., Ph.D., President, Global Health.

 

Novartis will also combine its Technical Operations and Customer & Technology Solutions units to create a new Operations unit that can accelerate multiple technology transformation initiatives more efficiently, create novel digital solutions at scale and increase productivity. Steffen Lang, currently Global Head of Novartis Technical Operations, will become President, Operations reporting to Vas Narasimhan. 

 

Novartis has appointed Shreeram Aradhye, M.D., as President, Global Drug Development and Chief Medical Officer effective May 16, 2022. Dr. Aradhye, who is returning to Novartis, was most recently Executive Vice President and Chief Medical Officer at Dicerna Pharmaceuticals where he led the development of multiple clinical stage RNAi assets.  Dr. Aradhye will report to Vas Narasimhan and join the ECN. With the changes in organizational structure and operating model, John Tsai, M.D., has decided to pursue opportunities outside Novartis effective May 15, 2022.