(Company corrects report that claimed an extra 400 mln usd savings will be made)
ZURICH (Thomson Financial) - Novartis AG plans to make savings of 400 mln usd at its pharmaceuticals business as part of a previously announced 1 bln usd cost-cutting initiative, a company spokesman said, citing the group's head of pharma, Thomas Ebeling.
'Our intention is to reduce by year-end our cost structure by 400 mln usd, relative to 2006,' the spokesman quoted Ebeling as telling an analyst briefing last week.
The Basel-based drug maker's cost-base had risen substantially after the expansion of its US sales force last year. The announcement of the cuts follows a number of recent product setbacks.
Novartis warned in July sales at its pharmaceutical unit would likely slow in the second half because of competition from generic drug makers for some of its key medicines as well as the US suspension of Zelnorm, a treatment for irritable bowel syndrome. andrew.ge.thompson@thomson.com at/wj COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.