Novartis Korea recently concluded its respiratory business unit and is now set to optimize its ophthalmology and pharmaceutical divisions to prioritize cutting-edge drug innovation. A forthcoming transition will see nine ophthalmology products, including 'Patanol,' handled by local partners commencing next year.

In a recent announcement on December 5th, Novartis Korea revealed an early retirement program (ERP) directed at the ophthalmology division, previously managing glaucoma and allergy products. Of the 43 staff members within the division, the ERP targets 20 individuals specifically associated with glaucoma and allergy products.

Speculation regarding Novartis' potential divestment of its ophthalmology and respiratory disease units for new drug funding had surfaced since last year. In 2022, an 8,000-employee reduction occurred, coupled with the decision to spin off the generics division, Sandoz.

This year, Novartis demonstrated proactive strides in new drug development by acquiring DTx Pharma in July 2023, securing 'DTx-1252' for treating Charcot-Marie-Tooth (CMT) type 1. November 2023 saw the introduction of 'CKD-510' from Chong Kun Dang Pharmaceutical Corp., showing promise for CMT type 2 treatment. This restructuring aligns with the company's shift towards innovative drugs, reflecting the headquarters' strategic focus evident in its Korean operations.

Post the 2022 restructuring, Novartis Korea underwent divisional reorganization into cardiovascular diseases and genetics, immunology, IBBI (in-market brands & business innovation), solid tumors, and hematologic malignancies. With the cessation of the respiratory business unit, Handok took over distribution, sales, and promotion of respiratory products such as 'Onbrez,' Xoterna,' ‘Enerzair Breezhaler,' ‘Atectura' from January 2023.

In the latest development, the ophthalmology division faces adjustments. Novartis Korea is streamlining nine products, including 'Patanol,' 'Pataday,' 'Pazeo,' ‘Azopt,' ‘Elazop,' 'Duotrav,' 'Simbrinza,' 'Travatan,' and ‘Izba' used for glaucoma and allergies. These products will transition to local partners for sales starting January 1st, 2024.

A spokesperson for Novartis Korea emphasized that this restructuring aligns with the headquarters' innovative pharmaceutical strategy to bolster long-term competitiveness in the local market. Discussions with local partners about the product transfer are ongoing, awaiting official confirmation.

Furthermore, Novartis continues to introduce high-cost medications, including Kymriah for blood cancer and 'Zolgensma' for spinal muscular atrophy, both now under insurance coverage. 'Luxturna' for inherited retinal diseases awaits insurance approval, while expanded coverage for 'Kisqali' for breast cancer and 'Cosentyx' aims to enhance patient accessibility.