Novartis chairman hints at forthcoming business review

Novartis' new chairman Joerg Reinhardt has suggested that the company is willing to review its business strategy as it pertains to its smaller divisions in the coming weeks.

In an interview with the Basler Zeitung newspaper, quoted by Reuters, the business leader said the firm remains committed to an overall strategy of diversification, but would be open to the idea of expanding or selling off non-core business units.

Mr Reinhardt said: "A division should also be attractive enough from a financial point of view to be kept in our portfolio. It is clear to me that portfolio management … must be actively pursued."

The chairman stated that Novartis is undecided on whether it will sell off its vaccines unit, while noting that the firm has the capability to make another multibillion-dollar acquisition soon.

However, he refused to be drawn on whether Novartis has any plans to sell its stake in fellow drugmaker Roche.

Mr Reinhardt took over as chairman of the company earlier this month, succeeding Dr Daniel Vasella, who has agreed a consulting deal with the organisation that will allow him to continue to share his expertise with the current management team.