Novartis Plans $1 Billion Cost Savings Amid Pressure to Perform

Novartis AG said it will reorganize to save least $1 billion by 2024, as Chief Executive Officer Vas Narasimhan seeks to convince shareholders he can improve the pharmaceutical giant’s performance.

The company plans to combine its pharmaceuticals and oncology units, Novartis saidMonday. The move will ensure sales growth of at least 4% through 2026, the Swiss drugmaker said, and help it reach the high end of its margin guidance for the innovative medicines business.

Vas Narasimhan

Photographer: Jason Alden/Bloomberg

It is the latest maneuver by Narasimhan to try and reshape Novartis and advance its research pipeline following a few challenging years. Some ...