Novartis says new focus should boost profitability
ZURICH, June 18
ZURICH, June 18 (Reuters) - Swiss drugmaker Novartis said its recent business overhaul should boost profitability and speed up growth as it focuses on businesses with scale and higher margins.
In a statement published ahead of its investor day in Basel on Wednesday, Novartis said its new structure would have added an extra 250 basis points to last year's core operating income margin.
"Following the expected completion of the portfolio transformation transactions, the new Novartis will be more focused, more profitable, with the potential to grow faster," Chief Executive Joseph Jimenez said in a statement.
In April, Novartis announced a series of deals that will see it exit underperforming businesses and add higher-margin cancer drugs from GlaxoSmithKline. (Reporting by Caroline Copley; Editing by Himani Sarkar)
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