Swiss pharmaceutical giant Novartis AG on Monday announced the surprise departure of Chief Executive Officer Joseph Jimenez after eight years at the helm of Europe's largest drugmaker, and the appointment of its drug development chief Vasanth Narasimhan as his successor.
With this, Jiminez will be handing off the challenge of selling underperforming assets and developing new medicines to the Harvard-trained doctor. Jimenez, who has been CEO since 2010, joined the company in 2007.
Basel-headquartered Novartis said in a statement on Monday that the appointment of Vasanth (Vas) Narasimhan will be effective February 1, 2018. Narasimhan is currently Global Head of Drug Development and Chief Medical Officer of the company and is also member of the Executive Committee of the company, the statement said.
Novartis board of directors Chairman Joerg Reinhardt said, "We anticipate a smooth transition as Joe built a strong leadership team and mentored his successor. Novartis will be well positioned to continue its momentum."
Narasimhan joined Novartis in 2005, prior to which he worked at McKinsey & Co. He received his medical degree from Harvard Medical School and a master's degree in public policy from Harvard's John F Kennedy School of Government. He holds a bachelor's degree in biological sciences from the University of Chicago.
Novartis's outgoing CEO Jiminez was quoted as saying that this is the right moment to hand the leadership reins of the company to Vas, both from a professional and personal perspective.
Last week, the company secured US regulatory clearance for a $475,000 breakthrough oncology therapy, a triumph for both Jimenez and Narasimhan.
Jiminez, a former H J Heinz Co. Executive, has reshaped Novartis through a series of complex transactions worth more than $30 billion in 2015.
His 2015 asset swap saw Novartis offloading vaccines and adding GlaxoSmithKline Plc's mature cancer drugs, as well as the formation of a joint venture to sell consumer healthcare products. The company is currently reviewing options including a spinoff or initial public offering for the Alcon division, Bloomberg reported.
However, financial news agency Bloomberg noted that Jimenez is handing over the reins at a crucial juncture, with the drugmaker yet to make a decision on the future of its ailing Alcon eyecare business or its stake in cross-town rival Roche Holding AG.
Novartis is one of the largest multinational pharma companies by both market capitalisation and sales, and was created in 1996 through the merger of Ciba-Geigy and Sandoz. The company has a rich history spanning over 200 years.
Narasimhan has held numerous leadership positions across Novartis in commercial, drug development and strategy roles. Prior to his current role, he served as Head of Development for Novartis Pharmaceuticals, the company said.
