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Novartis (NVS) to Undertake Job Cuts in Development Department
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Novartis (NVS - Free Report) is set to reduce its workforce by 680, per a report by Reuters. It will do so in its development organization, which helps bring its drugs to the market.
Of the reported figure, around 440 jobs will be cut in Switzerland and up to 240 in the United States over the next two to three years.
This headcount reduction is separate from the restructuring program (announced earlier), wherein Novartis will slash up to 8,000 of its total global workforce of 78,000.
The article stated that the company currently employs around 12,500 in development, which includes handling drug regulations, analytics and support functions like quality assurance. These employees are also involved in designing the production process for drugs following the completion of research work.
At present, 3000 of the roles are currently in Switzerland and 2,000 in the United States. The latest workforce reduction is likely to impact 14% of the positions in these countries.
Novartis also stated that it will add roles over the next two to three years. Consequently, there will be a net reduction of 1-2% at the global level.
Reportedly, the initiative is aimed at reshaping workforce and accessing local talent such as data scientists and regulation specialists in Britain. The company stated that it intends to carry on development work in both Switzerland and the United States.
Novartis’ fourth-quarter results missed expectations and the guidance for 2024 was not encouraging either. The company is gearing up to fuel growth with strategic acquisitions.
In February 2024, Novartis announced that it will acquire MorphoSys AG , a Germany-based global biopharmaceutical company, to expand its oncology portfolio.
The acquisition will add MorphoSys’s late-stage candidate pelabresib (CPI-0610) to NVS’ pipeline. The candidate is being evaluated in combination with Incyte’s (INCY - Free Report) Jakafi (ruxolitinib) for patients with myelofibrosis (MF), a rare bone marrow cancer.
Jakafi is a first-in-class JAK1/JAK2 inhibitor approved for polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease. While Incyte markets it as Jakafi in the United States, Novartis commercializes it as Jakavi outside the country.
Pelabresib is also being evaluated in patients with essential thrombocythemia in a mid-stage study.
Novartis will also add tulmimetostat (CPI-0209) to its deep pipeline. The candidate is an early-stage investigational dual inhibitor of enhancer of zeste homolog 1 and 2 (EZH1 and EZH2) proteins currently being tested in patients with solid tumors or lymphomas.
MorphoSys’ pipeline also includes ianalumab (VAY736), which is being evaluated across multiple immunological diseases and in hematology in partnership with Novartis. The MorphoSys acquisition will bolster Novartis’ broad oncology portfolio, provided pelabresib wins the FDA approval for MF.
Novartis has reportedly been on the lookout for an acquisition after selling its stake in rival pharma company Roche for $20.7 billion in 2021. With the successful spin-off of the Sandoz business in 2023, Novartis is now a pure-play innovative medicine company with a focus on these core therapeutic areas — cardiovascular, renal and metabolic, immunology, neuroscience and oncology.
Earlier in 2023, Novartis acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition added two late-stage candidates, atrasentan and zigakibart, for the treatment of immunoglobulin A nephropathy to NVS’ pipeline.
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Novartis (NVS) to Undertake Job Cuts in Development Department
Novartis (NVS - Free Report) is set to reduce its workforce by 680, per a report by Reuters. It will do so in its development organization, which helps bring its drugs to the market.
Of the reported figure, around 440 jobs will be cut in Switzerland and up to 240 in the United States over the next two to three years.
This headcount reduction is separate from the restructuring program (announced earlier), wherein Novartis will slash up to 8,000 of its total global workforce of 78,000.
The article stated that the company currently employs around 12,500 in development, which includes handling drug regulations, analytics and support functions like quality assurance. These employees are also involved in designing the production process for drugs following the completion of research work.
At present, 3000 of the roles are currently in Switzerland and 2,000 in the United States. The latest workforce reduction is likely to impact 14% of the positions in these countries.
Novartis also stated that it will add roles over the next two to three years. Consequently, there will be a net reduction of 1-2% at the global level.
Reportedly, the initiative is aimed at reshaping workforce and accessing local talent such as data scientists and regulation specialists in Britain. The company stated that it intends to carry on development work in both Switzerland and the United States.
Novartis’ fourth-quarter results missed expectations and the guidance for 2024 was not encouraging either. The company is gearing up to fuel growth with strategic acquisitions.
In February 2024, Novartis announced that it will acquire MorphoSys AG , a Germany-based global biopharmaceutical company, to expand its oncology portfolio.
The acquisition will add MorphoSys’s late-stage candidate pelabresib (CPI-0610) to NVS’ pipeline. The candidate is being evaluated in combination with Incyte’s (INCY - Free Report) Jakafi (ruxolitinib) for patients with myelofibrosis (MF), a rare bone marrow cancer.
Jakafi is a first-in-class JAK1/JAK2 inhibitor approved for polycythemiavera, myelofibrosis and refractory acute graft-versus-host disease. While Incyte markets it as Jakafi in the United States, Novartis commercializes it as Jakavi outside the country.
Pelabresib is also being evaluated in patients with essential thrombocythemia in a mid-stage study.
Novartis will also add tulmimetostat (CPI-0209) to its deep pipeline. The candidate is an early-stage investigational dual inhibitor of enhancer of zeste homolog 1 and 2 (EZH1 and EZH2) proteins currently being tested in patients with solid tumors or lymphomas.
MorphoSys’ pipeline also includes ianalumab (VAY736), which is being evaluated across multiple immunological diseases and in hematology in partnership with Novartis. The MorphoSys acquisition will bolster Novartis’ broad oncology portfolio, provided pelabresib wins the FDA approval for MF.
Novartis has reportedly been on the lookout for an acquisition after selling its stake in rival pharma company Roche for $20.7 billion in 2021. With the successful spin-off of the Sandoz business in 2023, Novartis is now a pure-play innovative medicine company with a focus on these core therapeutic areas — cardiovascular, renal and metabolic, immunology, neuroscience and oncology.
Earlier in 2023, Novartis acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition added two late-stage candidates, atrasentan and zigakibart, for the treatment of immunoglobulin A nephropathy to NVS’ pipeline.