Novartis adapts to changing market

Swiss drug major Novartis' chief executive Daniel Vasella stressed the need for Big Pharma companies to change in the face of a tougher market in an interview with the Wall Street Journal.

Novartis' stock, following the pharmaceuticals market trend, has dropped 25% in the last year, but showed a major turnaround in the last few months. Dr Vasella says that part of the problem was that the firm had become too big and too bureaucratic, and he was sometimes too remote from the day-to-day running of the company.

To remedy this, the company chief has employed several high level executives from outside the drug sector and started a major restructuring of the company. This includes a 25% cut in jobs at the firm's pharmaceutical headquarters in Basel, Switzerland. Also, Novartis has begun soliciting advice about drug candidates from health systems and other authorities in order to guide development.