Novartis CEO Jimenez to step down

Swiss pharmaceuticals company Novartis said on Monday that chief executive officer Joseph Jimenez plans to step down next year after eight years in the role.

Vasant Narasimhan, global head of drug development and chief medical officer, has been appointed as CEO with effect from February 1, 2018.

Jimenez, who joined Novartis in 2007, first led the consumer health division and then held the position of division head of Novartis Pharmaceuticals. He will be available for advice and support at the request of the chairman or the CEO until he retires from the group at the end of August 2018.

Chairman Joerg Reinhardt said: "I would like to express my sincere appreciation for Joe's achievements as CEO. During his tenure, Joe focused Novartis on leading global businesses, while divesting non-core divisions.

"Under his leadership the innovation pipeline was rejuvenated, and we successfully navigated the patent expirations of our two largest products. We anticipate a smooth transition as Joe built a strong leadership team and mentored his successor. Novartis will be well positioned to continue its momentum."

Jimenez said it was "the right moment" to hand over the reins of the company to Narasimhan.

"Our strong pipeline and the strategic moves we have taken to focus the company have put Novartis on a strong path for the future. On the personal side, after 10 wonderful years in Switzerland, my family is ready to return to Silicon Valley and the US. I'm confident that Vas will be an excellent successor."

At 1230 BST, the shares were down 0.9% to CHF80.10.