Novartis To Strengthen Pipeline, Boost Productivity With New Organizational Structure - Novartis (NYSE:NVS)

Novartis AG NVS will integrate its pharmaceuticals and oncology units into an innovative medicines (IM) business to simplify its structure, targeting savings of at least $1 billion by 2024.
"Integrating pharmaceuticals and oncology business units into an innovative medicines (IM) business with separate U.S. and international commercial organizations will increase focus, strengthen competitiveness and drive synergies," the Company.
It said it expects selling, general and administrative savings of at least $1 billion to be fully embedded by 2024 due to these changes.
Novartis appointed Marie-France Tschudin as president of innovative medicines international and chief commercial officer and Victor Bulto as president of innovative medicines in the U.S.
Read Next: Novartis Expects FY22 Sales, Profit Growth; Sandoz Review Continues.
Steffen Lang will take over as president of operations, while Shreeram Aradhye will become president of global drug development and chief medical officer.
Susanne Schaffert, Robert Weltevreden and John Tsai are leaving Novartis, the company said.
Value creation through these operational improvements should ensure at least 4% sales growth in constant currency through 2026.
Novartis also expects to deliver at the high end of its IM margin guidance of the high 30s in the medium term and 40% or more in the mid-to-long term.
Price Action: NVS shares are up 0.75% at $88.35 during the premarket session on Monday's last check.
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