Novartis has started a revamp of its business - including changes at the top of its Alcon eyecare division - after missing sales and earnings targets in its fourth quarter results.
The company has said it will strip out the ophthalmic drug business from Alcon and transfer products either to its pharmaceuticals or generics divisions, after a 13% fall in sales at the unit to $2.3bn. Overall revenues at the group fell 4% to $12.5bn.
The poor performance of Alcon dragged down operating income at the Swiss group - falling 64% to $132m - but it was not the only reason for its poor showing.(...)
After the bulk of its pharmaceutical products are transferred elsewhere, Alcon will focus on vision care products such as contact lenses and its eye surgery product lines.(...)
"We have a plan for Alcon, which we can execute immediately, and this is going to make us a stronger and a better company as we move to make some of the changes in both drug development as well as our manufacturing footprint," said Jimenez.