"We have spent too much money on marketing and selling our drugs," Jimenez says in an interview to be published Thursday.Novartis has already reduced its spending, but Jimenez said, "We can save even more, even if we grow. This business revolves around science, not around marketing."
Further savings are also planned in the production area, Jimenez says, which could mean plant closures.
"We have 83 factories and we only use about 50% to full capacity--that isn't good," Jimenez says.
The company's research and development budget would remain intact, and could even be increased in the next five years, the CEO says.
Jimenez says he is optimistic about the future.
"I expect further growth for Novartis during the next five years."
Comenta FiercePharma
Those are words sure to frighten Novartis marketing and sales folks, who've already absorbed hundreds of layoffs. The Swiss drugmaker cut its sales force by 1,400 last year in the U.S. as it shifts focus from mass-market medicines to specialty drugs. But the company's manufacturing operations could see some big changes, too. Cuts there could mean that underperforming plants are shut down completely.
"We have 83 factories and we only use about 50% to full capacity--that isn't good," Jimenez said. "We should identify centers of excellence, and consolidate our manufacturing."
One area that appears to be safe is R&D. Remember what Jimenez said about the science? With that in mind, he may even boost R&D spending over the next 5 years, he said.
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