Novartis CEO reshapes drugmaker for ‘brutal’ new world

By Caroline Copley and Ben Hirschler BASEL, Switzerland (Reuters) – Novartis Chief Executive Joe Jimenez is taking a hard look at the drugmaker's smaller businesses as he reshapes the company for what he expects to be a "brutal" new era in healthcare spending. At least one of the three sub-scale units – animal health, vaccines and over-the-counter medicines – is not expected to make the cut, he told Reuters in the clearest indication yet of how the review is progressing. While the three smaller divisions make up only 10.5 percent of Novartis sales, the review – which is due to be completed by the end of the summer – is a major focus for shareholders who are pushing all drugmakers to improve returns on investment. The industry has already seen Abbott Laboratories split off its innovative drugs into Abbvie, Pfizer spin out animal health into Zoetis, and GlaxoSmithKline sell drinks brands Lucozade and Ribena.