The pharmaceutical company Novartis has carried out a profound restructuring process on a global scale that has had a strong impact in Spain, a strategic country where the Swiss group landed more than a century ago with the opening of a chemical laboratory in the Barcelona area. In this country, the person responsible for orchestrating the change in strategy has been Jesús Ponce, who assumed the presidency of Novartis Spain in 2019 after a long career at Astrazeneca. Since November 2022, he is also the president of Farmaindustria, the National Business Association of the Pharmaceutical Industry established in Spain.
How do you assess the evolution of the Novartis business in recent years?
The group is immersed in a global transformation to focus on innovative medicines that fight cardiovascular and oncological diseases, the two main causes of death in the world. Hematology, immunology and neurology are also strategic areas.
On the other hand, the areas related to ophthalmology medicines and respiratory diseases are less strategic. This summer, the company announced the sale of Bausch
Indeed, within this restructuring process we have established areas that are less strategic. We have also decided to spin off the Sandoz generic drug division into a separate company. This separation allows both companies to maximize their creation value and strengthen each other’s strategic plans. In the case of Novartis, invest in R&D in the five therapeutic areas that I mentioned before.
What impact does this restructuring have in Spain? In 2020, the company already outsourced the production of ophthalmological medicines with the sale of the Barberà del Vallès and Masnou plants to the Siegfried group.
The restructuring process has involved various measures over the past few years. In 2024, we are also going to close the factory in Les Franqueses (Vallès Oriental) because its operation had become obsolete. In this plant, specialized in the production of amoxicillin, 177 people work. About 60% are going to retire early and 40% are going to move to the Sandoz plant in Palafolls (Maresme). In addition, a part of the activity that was carried out in Les Franqueses will be transferred to a production center located in the Austrian town of Kundl.
Last autumn an ??ERE was also announced in Spain linked to administrative and commercial staff.
This is another measure that was framed within the global restructuring plan. In the group as a whole, 8,000 workers were laid off, 7% of the total workforce. In Spain, the ERE had to affect 240 people, but in the end we managed to get only 117 people fired. There were no cuts in factories. In fact, last year we launched an investment plan on an industrial scale.
Which is it?
In total, we are going to invest 76 million euros in modernizing and expanding different Spanish centers. The Sandoz plant in Palafolls will receive a large part, a total of 63 million, while the Zaragoza factory will receive 1.5 million and in Salamanca 12 million will be invested in the construction of a new radiopharmaceutical factory. In addition, we are going to maintain activity at the radiopharmaceutical plants in Esplugues de Llobregat and Murcia. They are already well sized and are part of the group’s new R&D strategy.
Apart from the investment in factories, what other projects are underway?
Clinical drug trials are another strong commitment of Novartis in Spain. Especially those that are in phase I and II, which are the most difficult to carry out. We collaborate with hospitals throughout the country, especially those in Catalonia, where there is more participation. In fact, this year we have announced the arrival of the pioneering study in the world on the treatment of lupus patients with cell therapy promoted together with the Campus Vall d’Hebron in Barcelona.
How many clinical trials do you have going on?
In the whole of 2022, we carried out 247 trials and half were early phases (I and II). In total, we involved 9,000 patients, especially those with cardiac and oncological diseases.
What was the investment in these studies?
It reached a total of 85 million euros, a budget that is in line with previous years. In addition, Spain is also a global benchmark for its centers of excellence.
What do you do?
We recruit local and international professionals specialized in different areas, such as clinical development, digital transformation or finance. These centers are in full growth because they carry reference projects within the entire group.
In a global fight to attract the best talent, against which countries does Spain compete?
In the case of Novartis, we dispute the projects with Ireland and the Czech Republic. The three countries offer optimal working conditions and the ability to attract versatile and well-prepared talent.
How many people do these centers employ?
In total, the team has 425 people, and the forecast is to reach 500 by the end of this year. The employees work in seven different centers, half are in Barcelona and the other half in Madrid.
Based on the figures it shares, the group’s presence in Catalonia is notable…
Yes, Novartis has historical roots in this community, since it opened its first laboratory in Spain here in 1921. The company that landed in Barcelona was Ciba, which over the years grouped with Geigy and Sandoz until Novartis was born as such in 1996.
What is the turnover of the group in Spain?
In 2022, we invoice 1,578 million euros and employ 2,118 people. This year, turnover will grow by around 1%, at the same rate as the group is doing on a global scale after applying the profound business restructuring process.
The company’s stock price is practically at all-time highs. This means that the market applauds the change in strategy.
We are convinced that the great business opportunities lie in innovation.
