Novartis AG (NYSE: NVS) confirmed the launch of a new organizational structure and operational model to meet the company's long-term goals of innovation, growth, and productivity as a focused medicines company. The flexible and competitive organizational model the company launched is critical to its growth strategy because it will improve patient and customer orientation, unleash the substantial potential in our R&D pipeline and drive value creation through operational efficiencies.
As per the new organizational structure, Novartis will combine its Pharmaceuticals and Oncology business segments to form two separate commercial entities, Innovative Medicines in the US and Innovative Medicines International, with a stronger regional focus. For their respective markets, the two entities will have full P&L management across all therapeutic areas, as well as ownership of customer experience, marketing and sales, and market access.
Furthermore, Novartis also confirmed that it is establishing a new Strategy & Growth unit that will combine corporate strategy, R&D portfolio strategy, and business development. This function will support Novartis' overall growth strategy by identifying internal and external opportunities to expand the company's pipeline with medicines that are both transformational and can contribute significantly to growth.
In addition, Novartis will also form a new Operations unit by combining its Technical Operations and Customer & Technology Solutions units. This new unit would provide a stronger and simpler operational backbone that will allow the company to speed up multiple technology transformation initiatives more efficiently, develop novel digital solutions at scale, and boost productivity while retaining the industry-leading quality and service levels.
Shreeram Aradhye, M.D., has been named President, Global Drug Development, and Chief Medical Officer of Novartis, beginning May 16th, 2022. Dr. Aradhye, who is back to Novartis, was most recently Executive Vice President and Chief Medical Officer of Dicerna Therapeutics, where he oversaw the development of RNAi assets in clinical trials.