【Pharmaceutical Network Industry DynamicsSince 2026, multinational pharmaceutical companies represented by Merck and Johnson & Johnson have been intensively advancing adjustments to their business structures, with the core direction being a focus on key sectors, strengthening pipeline commercialization, and optimizing regional/channel collaboration.
Merck & Co.
Recently, Merck announced the adjustment of its human health business organizational structure, dividing the human health business into an oncology business unit and a specialty medicines, general medicines, and infectious diseases business unit.
To align with the new organizational structure, Jannie Oosthuizen has been appointed as Executive Vice President and President of Oncology and Merck International Business. Previously, Oosthuizen served as Senior Vice President and President of Merck's Human Health U.S. operations, overseeing the profit and loss, strategic planning, and commercialization of Merck's product portfolio in the United States.
Regarding this structural adjustment, Merck stated that it will enable the company to maintain a high level of focus on the increasing number of projects coming to market within an increasingly broad and diversified portfolio, while retaining its long-term leading position in the field of oncology.
Takeda Pharmaceutical
On January 29, Takeda Pharmaceutical announced the launch of a new round of global organizational restructuring and senior management team adjustments to better respond to the dynamically changing external environment, improve operational efficiency, and accelerate decision-making. The core of this adjustment is to reorganize the existing departments into three major core sectors, which will officially take effect on April 1, 2026. This adjustment is regarded as an important measure for Takeda Pharmaceutical to accelerate globalization and optimize resource allocation.
While undergoing organizational adjustments, Takeda also disclosed recent progress in its product pipeline. In the next 18 months, the company plans to launch several key products globally, including the oral innovative drug Opeveorexon, Roxadustat for the treatment of polycythemia vera, and the psoriasis candidate drug Fusolitinib, to support growth under its new structure.
Johnson & Johnson
Starting from January 1, Johnson & Johnson's medical technology sector (J&J MedTech) implemented a major organizational restructuring worldwide. The existing region-led operational model will transition to an end-to-end operational system centered on Business Units (BU), covering the complete value chain from product development, market strategy to commercial execution.
The specific arrangements are as follows: Surgery will be led by Hani Abouhalka, the chairman of the company group, with an independent regional management structure established; EP & Neurovascular will be headed by Michael Bodner as the group chairman, with a dedicated regional team also set up; the original supply chain teams in each region under the global supply chain will be unified under the management of MedTech Supply Chain Vice President Luis Roman; corporate functions (such as HR, IT, legal, etc.) will gradually undergo structural adjustments to better support the new BU-led model.
Novo Nordisk
Starting from January 1, Novo Nordisk China will implement a major business restructuring. This adjustment is a continuation of Novo Nordisk's business integration in China and will further help achieve the strategic division of "academic brand focus + strengthened terminal penetration."
This adjustment has three major highlights: The Emerging Business Division (EBD) is officially renamed the Insulin Business Division (IBD), which will be responsible for the innovative insulin product line business; the Obesity and Diabetes Division (DOD) will oversee the product line business of semaglutide in the obesity and diabetes fields, solidify the advantages of Novo Nordisk’s Rybelsus® in the diabetes field, establish the brand of NovoForm®, and accelerate the establishment of a competitive advantage for the Wegovy® brand to build a strong market position in China’s obesity sector; the Distribution and Retail Division (DRD) will continue to collaborate with distributors to handle grassroots hospital sales of innovative products and all-channel sales involving bulk procurement, while further cultivating the retail market.
Conclusion
From an overall perspective, multinational pharmaceutical companies are densely advancing their business structure adjustments. This is a strategic contraction and restructuring adopted by the entire industry under the triple pressures of the patent cliff, declining R&D returns, and dramatically changing market conditions. In the future, as more blockbuster drugs approach the patent cliff, it is expected that more pharmaceutical companies will follow suit in organizational restructuring.
Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.