Novartis continues to restructure

Novartis announced that it will split its pharmaceuticals division into 2 separate business units:  Novartis Pharmaceuticals and Novartis Oncology. The 2 units form the basis of a newly-created Innovative Medicines Division.

Novartis previously announced plans to revive its ailing eye care division, as Alcon contributed to a 57% decline in fourth-quarter net profit. Novartis shares have lost 23% of their value over the past 12 months.

The move will take place on July 1, 2016, leaving the Swiss-based drug company with 3 focused, customer-facing divisions: Innovative Medicines, made up of Novartis Pharmaceuticals and Novartis Oncology business units; Sandoz, the generics and biosimilar division; and Alcon, the eye care devices division, which includes the surgical and vision care franchises.

Paul Hudson will be appointed CEO of Novartis Pharmaceuticals and Bruno Strigini is the new CEO of Novartis Oncology. David Epstein, currently Division Head and CEO of Novartis Pharmaceuticals, has decided to leave Novartis.