25. October 2011 14:40
Novartis will cut 2,000 manufacturing jobs in Switzerland and the US – despite seeing an increase in group net sales and operating income in Q3.
The positions will be cut by 2016 after the closure of two Swiss production sites and one in Italy, plus the restructuring and relocation of R&D activities from Switzerland to the US.
Joseph Jimenez, CEO of Novartis, said the job losses are needed for the Group to “continue delivering on our mission of bringing innovative new drugs to patients.”
However, the job losses will be offset by the creation of 700 new positions in low cost and other countries, the company said.
The Group recorded a sales increase of 12% in constant currencies to $14.8 billion and saw income also grow by 11% to $4.1bn.
Sales were boosted by a strong performance from recently launched products – which contributed 25% of net sales.
Pharmaceutical sales grew 9% after Afinitor (pictured)/Votubia was approved in the EU for two additional indications, the CHMP granted a positive opinion for Rasitrio for high blood pressure and the company’s breakthrough multiple sclerosis treatment, Gilenya, won approval in Japan.
“Once again, the breadth of our business and product portfolio allowed us to deliver strong financial results and operating leverage, as well as significantly advancing the pipeline in the quarter,” said Mr Jimenez. “To strengthen our future, we have accelerated actions to reduce our cost base over the next few years.”