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April 15, 2010
A Re-Org at Novartis
Here's the letter sent out to Novartis employees about the new structure for their US pharma business. Stripped of the biz-speak (aligning priorities, high-growth this, competitive advantage that, you all can fill in the rest), what it says is that (first) the current US pharma head is leaving (replacment to be named soon).
Second, there will be four Business Units: primary care, multiple sclerosis, CNS, and one that looks like a catch-all, respiratory/transplant/infectious disease. The latter ones used to be under the broad heading of "Specialty Medicine" (as opposed to primary care), but now get their own billing.
The biz-speak gets especially thick in this detail-light paragraph, which I suppose will become clear with time:
To maximize investment in high-impact growth areas, we are implementing a brand prioritization approach that will allocate resources based on the brand's growth potential and lifecycle stage. This means we will elevate support for some brands and reduce support for others. We will ensure that critical patient needs are met but we can no longer sustain the old approach to resourcing. You will be hearing more about this from your functional leaders.
The one thing that is made clear in that section is that about 250 people will lose their jobs - "mostly in headquarters", it says. There's also a line about how this is all about "a shift in mindset from doing more with less to prioritizing our focus and resources". If you have some spare time, you can try to work out what the difference might be between those, how you prioritize a focus, and other such questions, but most readers will probably have something more productive to do. . .
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