The wave of restructuring among global pharmaceutical companies is intensifying. Several firms are introducing voluntary retirement programs to maintain competitiveness and align their organizational structures with evolving portfolios.

Novartis Korea has joined this trend by announcing a voluntary retirement program, citing the upcoming implementation of the government’s overseas drug price reassessment policy as a significant factor. This policy, expected next year, will likely lead to price reductions for key hypertension treatments such as Diovan and Exforge, potentially impacting revenue. The government has indicated plans to include gastrointestinal drugs, hypertension treatments, and antibiotics in the first phase of this reassessment.

“To enhance organizational efficiency and agility and strengthen competitiveness in the rapidly changing Korean pharmaceutical market, the CVM (Cardiovascular Metabolic) and Tx (Transplantation) teams will be merged into the CMX team,” stated Novartis. “As a result, workforce reductions are unavoidable, and voluntary retirement will be offered to the CMX team. Detailed guidelines will follow.”

Additionally, Novartis plans to restructure its In-market Brands (IB) division, a key contributor to its Korean revenue. Effective January 1, 2025, this division will be rebranded as Renal & IB to ensure sustainable growth and support the successful launch of its renal portfolio.

This decision follows Novartis’ acquisition of Chinook Therapeutics, a U.S.-based company specializing in treatments for rare and chronic kidney diseases. This acquisition includes late-stage therapies such as Atrasentan and Zigakibart for IgA nephropathy (IgAN), which have likely influenced these organizational adjustments.

The restructuring also involves transferring the Zolgensma and Tx teams to the newly formed Renal & IB division and introducing a Digital Liaison role to streamline operations.

Novartis Korea emphasized, “Aligned with our headquarters’ strategic direction, we have been making concerted efforts to accelerate new product launches and strengthen our portfolio. This organizational restructuring is part of our commitment to securing competitiveness and achieving sustainable growth in the dynamic South Korean pharmaceutical market.”