Revolving Door: Novartis India Managing Director Quits
Executive Summary
Novartis India’s managing director has quit - the second time in 2018 that the Swiss multinational finds the corner office vacated.
Milan Paleja, vice chairman and managing director of Novartis India, is moving on, just months after taking over the top job at the Swiss multinational’s Indian operations.
This is also the second time in less than 12 months that Novartis India will see the exit of an MD. Previous head Jawed Zia was appointed effective March 1, 2018 but left soon after to join Abbott India as vice president (established pharmaceuticals).
Novartis said that Paleja had informed the board of directors on Dec. 5 of his decision to step down as the vice chairman and managing director, effective close of business hours on May 31, 2019. It said he would be “embracing challenges” outside the company. Paleja had moved into the corner office at Novartis India effective June 1, 2018 for a five-year term.
“The Board requested the Nomination and Remuneration Committee to identify and recommend a suitable successor for the role of managing director of the company,” Novartis India informed the Bombay Stock Exchange on Dec. 5.
Disturbing Signals?
Paleja’s exit has sparked some speculation around the revolving door situation at the helm of Novartis India, with some industry watchers claiming that such frequent top-level changes send “disturbing signals” to various stakeholders including employees, investors and business partners.
“Two successive exits in such a short span of time are less likely to be routine,” an industry expert said. Others, however, indicated that the company has a good talent base and established systems and process that will facilitate a neat transition.
Paleja, who joined Sandoz India in 1982 in the finance function, had over the years held positions of increasing responsibility in consumer health, Sandoz and pharmaceuticals, at country and regional level, in diverse geographies including Singapore, South Africa and Switzerland. He was also Country President and Head (Pharmaceuticals) of Novartis Indonesia, where he is said to have pioneered innovative access models and turned around the business.
More recently, at an interaction with Scrip at the time of Novartis Pharmaceuticals CEO Paul Hudson’s visit to India, Paleja enthusiastically referred to the potential of Modicare - India’s massive National Health Protection Scheme (NHPS), which expects to cover 100 million poor and vulnerable families with health cover for secondary and tertiary care hospitalization. (Also see "Novartis Pharma CEO On Star Products, Pricing And Rebates" - Scrip, 24 Aug, 2018.)
“What would be important for us as a company and an industry is to work with the government to see how they can expand the coverage and further it is opened to even innovative medicines, which can be very helpful and where we are very keen to partner,” Paleja said at the time. (Also see "Can Modicare Reshape India’s Health Care Paradigm?" - Scrip, 27 Nov, 2018.)