Novartis to Split Drug Division

Swiss drug giant Novartis AG on Tuesday outlined changes to its pharmaceuticals division, saying it would split the unit into two businesses, one of which will be focused on cancer drugs.

The company also said David Epstein, current chief executive of Novartis Pharmaceuticals, is leaving the company for other opportunities.

One of the drug businesses will be called Novartis Pharmaceuticals and led by Paul Hudson, current executive vice president of North America. The cancer business will be Novartis Oncology and led by Bruno Strigini, current head of Novartis Oncology.

Beginning July 1, Novartis will have three customer-facing divisions. One is Innovative Medicines—formerly the Novartis Pharmaceuticals division, which will include the Novartis Pharmaceuticals and Novartis Oncology business units. Another is Sandoz, the generics and biosimilars division, while the third is Alcon, the eye-care devices division.

Novartis shares, which have lost 23% of their value over the past 12 months, slid 9 cents to $75.54 in afternoon trading in New York.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

May 17, 2016 13:55 ET (17:55 GMT)

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