When are skyrocketing earnings bad news? When they're not based on rising drug sales. Novartis posted $6.87 billion in profits, more than triple its results during the third quarter last year, on the strength of large divestments.
Pharma results were so poor that the company will lay off 1,260 in the U.S. and rearrange its management. Joe Jiminez, who joined the company in April from the private equity firm Blackstone Partners, will take over the drugs unit, replacing Thomas Ebeling, who's moving to the consumer health division. And, just like another Big Pharma company we all know, Novartis said it will start a new unit focusing on biologics.
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