Two-stage strategic Transformation plan foresees measures for organizational realignment, followed by increased investments to drive growth segments
Realignment of organization involves a planned reduction of global workforce by approximately 900 FTEs, including closure of Holzkirchen development center
HOLZKIRCHEN, May 15, 2019 – Sandoz today announces plans for a leaner and more efficient global organization, to drive cost competitiveness as the first stage of its ongoing strategic Transformation and support investments into future growth. The plan is a part of an ongoing shift to position Sandoz for sustainable growth in the global generics market.
The organizational realignment represents the first step in a two-stage plan, the second stage of which will include increased investments to drive growth segments and long-term Sandoz leadership in the global generics industry. The plans are part of a coordinated response to increasing industry-wide competitive pressures and structural market changes.
The realignment includes an expected reduction of up to 900 FTEs (~7% of the global Sandoz workforce excluding manufacturing (NTO) and Novartis Business Services) across all functions and regions, including the planned closure of the Holzkirchen development center. The plans are pending agreement by local works councils.
Francesco Balestrieri, ad interim Sandoz CEO, said: “We don’t take people decisions like this lightly – we are very aware of the implications for individual employees and will do everything we can to ensure that those impacted by the planned changes are treated with the utmost respect. However, we need to act now to ensure the future of Sandoz and to enable us to continue delivering on our purpose: to pioneer access to healthcare.”
He added: “We are acting early and from a position of strength, to generate additional funding to reinvest in future growth areas, particularly biosimilars and differentiated and hard-to-make generics, to establish Sandoz over time as the world’s leading and most valued generics company and help us to deliver on our purpose. The generics industry is changing rapidly, and we need to act now to stay ahead of the competition.”
Disclaimer This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by words such as “plan,” “drive,” “ongoing,” “future,” “strategic Transformation plan,” “foresees,” “followed by,” “emerging,” “plans,” “will,” “first step,” “first stage,” “second stage,” “portfolio,” “purpose,” “pioneer,” “focused,” “can,” “launch,” “may,” “potential,” or similar terms, or by express or implied discussions regarding the Sandoz strategic transformation plan, including potential benefits of and savings from the plan, regarding potential launches, marketing clearances and authorizations, new indications or labeling for the products described in this press release, or regarding potential future revenues from such products. Such forward-looking statements are based on our current beliefs and expectations regarding future events, and are subject to significant known and unknown risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. You should not place undue reliance on these statements. There is no guarantee that the Sandoz strategic transformation plan will achieve any or all of its intended goals and objectives, or within any particular time frame. Neither can there be any guarantee that the strategic transformation paln will be completed in the expected form, in the expected time frame, or at all. Nor can there be any guarantee that the products described in this press release, or Sandoz generally, will be commercially successful or achieve any particular financial or business results in the future. In particular, our expectations regarding such products, the strategic transformation plan and Sandoz generally could be affected by, among other things, the agreement reached with local works councils, the uncertainties inherent in research and development, including clinical trial results and additional analysis of existing clinical data; regulatory actions or delays or government regulation generally; global trends toward health care cost containment, including government, payor and general public pricing and reimbursement pressures and requirements for increased pricing transparency; the particular prescribing preferences of physicians and patients; competition in general, including potential approval of additional competing versions of Sandoz products; our ability to obtain or maintain proprietary intellectual property protection; litigation outcomes, including intellectual property disputes or other legal efforts to prevent or limit Sandoz from marketing its products; general political, economic and industry conditions; safety, quality or production issues; potential or actual data security and data privacy breaches, or disruptions of our information technology systems, and other risks and factors referred to in Novartis AG's current Form 20-F on file with the US Securities and Exchange Commission. Novartis is providing the information in this press release as of this date and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
About Sandoz Sandoz, a Novartis division, is a global leader in generic pharmaceuticals and biosimilars and a pioneer in the emerging field of prescription digital therapeutics. Our purpose is to pioneer access to healthcare by developing and commercializing novel, affordable approaches that address unmet medical need. Our broad portfolio of high-quality medicines, covering all major therapeutic areas and increasingly focused on value-adding differentiated medicines, accounted for 2018 sales of USD 9.9 billion. Sandoz is headquartered in Holzkirchen, in Germany’s Greater Munich area.