Novartis cuts jobs on profit slip

Generic versions of three Novartis drugs have been launched

Swiss pharmaceutical firm Novartis has said that it is cutting about 1,250 jobs in the US as it reorganises the management structure of its drugs arm.

The announcement came after drug sales slowed by 2% in the three months to the end of September.

Overall underlying profits fell 12% to $1.57bn (£769m) from $1.79bn in the same period a year ago.

But the sale of its Gerber baby foods and Medical Nutrition units to Nestle boosted net profits to $6.87bn.

Novartis said its sales had been hit by its bowel drug Zelnorm being withdrawn in the US in March, as well as the launch of generic versions of three of its medicines.

It added that the job cuts would lead to annual savings of about $230m.