Net sales also slid 5% to $49.4 billion (nearly Rs 3,336,47.6 crore) but when currency changes were stripped out that represents a 5% gain, the company said.
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The idea, according to Novartis, is to better coordinate its wide-ranging, disparate development arm by putting one person at the helm, improving “resource allocation, technology and standards across divisions”, the company said.
Novartis is replacing the top executive at Fort Worth-based Alcon as part of a broad restructuring after revenues at the maker of eye-care drugs and equipment plummeted.
Net sales from continuing operations decreased 4 percent to 12.52 billion from $13.08 billion in the prior year.
Global sales in the fourth quarter fell 4 percent, with revenue from the pharmaceuticals division unchanged at $7.9 billion and the Sandoz unit shrinking by 8 percent to $2.3 billion.
In tandem with its annual financial results, the company said it promoted former head of development Vas Narasimhan to the newly created position of chief medical officer, tasking him with overseeing the company’s roughly $9 billion drug development operation. Mr. Ball left Hospira past year, after it was acquired by Pfizer Inc. Previously, he spent five years as President of Allergan, where he worked for 16 years.
Currency swings had a -10 per cent effect on sales and a -15 per cent effect on core operating income a year ago, it added.
Novartis has announced plans to re-organise its eye unit Alcon in order to secure future growth and lift the company’s profit.
In addition, Novartis said it would take steps, including centralizing manufacturing to reduce costs by $1 billion annually by 2020. Generic competition impact on sales is expected to be as much as $3.2 billion compared to $2.2 billion in 2015. He also oversaw its expansion to 164 countries, where it has more than 26,000 associates, Novartis said.
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Alcon has been in a rut, with its glaucoma drug Travatan Z patent expiring last month, intraocular lens implant revenue slumping and an underperforming over-the-counter contact lens solution biz.
