Novartis US unit restructures, slashing 1,400 pharma field staff; to showcase oncology drugs at ASH meeting

Swiss drug major Novartis’ (NOVN: VX) US subsidiary says that it is restructuring its general medicines field force in the USA to reflect changes in the product portfolio and align resources with strategic growth priorities. The company will reduce its US sales field force by approximately 1,400 positions. These changes will be effective January 1, 2011 and result in a one-time cost of around $85 million.

The company’s shares dipped 1.5% to 53.25 Swiss francs at close of trading in Zurich yesterday. Group sales at Novartis reached $36.4 billion in the first nine months of this year, with pharmaceutical turnover of $22.5 billion of which the USA generated $7.5 billion, up 6% year-on-year on a constant exchange rate basis.

Novartis, which last month announced group-wide productivity initiatives (The Pharma Letter November 18), says that the product portfolio within the Novartis Pharmaceutical Corp General Medicines business is changing due to pending patent expirations and pipeline products. Novartis said it has 6,449 employees in its US general medicines business, meaning it will eliminate about 22% staff in this unit.