Novartis unveils group-wide productivity initiatives to improve efficiency in manufacturing, sales, marketing and procurement

Swiss drug major Novartis (NOVN: VX) has presented a strategic overview of its diversified health care portfolio and outlined initiatives to improve efficacy in manufacturing and marketing, as well as focussing on specialty drugs rather than general practice medicines. The company did not specify cost-cutting figures, but indicated that it will cut marketing and sales spending. The news came just hours after Swiss rival Roche unveiled a multi-billion-dollar cost-saving and jobs loss program (The Pharma Letter November 17).

"Novartis has leading businesses in fast growing segments of health care, and by focusing on our strategic priorities we are well positioned to succeed in a rapidly changing healthcare environment," said Joseph Jimenez, chief executive of Novartis. "Novartis remains committed to the core strategy of focused diversification in high-growth health care segments. We are leveraging our core competencies in scientific discovery and development to continue driving innovation, growth and productivity across the businesses," he added.

The company noted that, while health care is expected to remain a growth industry well into the future, it also is a rapidly and dramatically changing environment, creating new opportunities and challenges. The aging population and increasing rates of obesity are leading to increased demand for health care. However, downward pricing pressures and health care reforms will also force companies to adapt their approach to reimbursement and build broader portfolios that can deliver on diverse health care needs, says Novartis.