Lamberto Andreotti has been the chief executive officer (CEO) of the Swiss pharmaceutical firm Novartis since 2010, and has overseen a period of great growth and expansion for the company. He was formerly the CEO of Novartis’ Italian pharmaceutical subsidiary, Sandoz. An Italian by birth, he has developed a reputation for being an astute, yet strategically flexible leader, who is adept at balancing short-term pressures with long-term objectives. In this essay, we’ll take a closer look at Andreotti’s career, and how it has shaped the company he now leads.
Born in in Parma, Italy in 1952, Andreotti studied Economics and Business Administration at the University of Milan before starting a career in the pharmaceutical industry. His first role was with Sandoz, the pharmaceutical firm acquired by Novartis in the late 1990s, where he rose to become Chief Executive of the Italian subsidiary in 1997. During his tenure at Sandoz, Andreotti’s main focus was on research and development, and he was credited with leading the firm’s efforts in pioneering new drug development projects. In particular, he was noted for his leadership in the development of new treatments for HIV/AIDS, which have become widely used around the world.
In 2003, Andreotti was appointed as Chief Executive Officer of Novartis, and began to take the company in a different direction. He saw potential in expanding Novartis’ portfolio of products into more lucrative markets, such as biotechnology, cancer drugs and diagnostics. He also sought to build a platform of working relationships with government, regulatory and market players to ensure the company’s success in those sectors. He thus embarked on a period of extensive mergers and acquisitions, including a strategic alliance with the Chinese firm Sinopharm, and the acquisition of the Warren Kronish Cancer Institute in New York.
The effect of Andreotti’s strategies was clear. By the end of his first year as CEO, Novartis’ sales had increased by 9%, earnings by 12%, and net asset value by 25%. In the years since, the company’s financial performance has continued to improve, with Andreotti amassing $50 billion in assets and $18 billion in cash. He also drove an ambitious cost savings program, which has allowed the company to continue to increase its bottom line, despite increased competition from generic drugs.
As well as his financial acumen, Andreotti is known for his leadership style. He believes in setting a clear vision and direction for Novartis, but is also keen to foster an environment of collaboration, creativity and decision-making. This has helped the firm to remain flexible and responsive to changing market conditions, while still effectively pursuing its long-term goals. This approach has resulted in a culture of innovation and creativity across all areas of the business, including one that supports his appetite to expand into new areas, such as biotechnology, as evidenced by the September 2016 acquisition of the American firm The Medicines Company.
Andreotti is also an advocate of corporate social responsibility, and has spearheaded initiatives to improve access to healthcare in developing countries. His policies have seen Novartis launch a ‘Global Access Programme’, offering low-cost drugs in Africa, Asia and the Middle East, that provides essential medications to those who would otherwise not be able to afford them. This has been complemented by other initiatives, such as the ‘Novartis Medicines for Children’ programme, which gives free treatments to children in poverty-stricken areas.
During his tenure as CEO, Andreotti has also earned a reputation for taking a ‘hands-on’ approach to employee relations. He is closely involved in the development and training of new managers and has established a strong sense of trust and collaboration between himself and his staff. Regular staff meetings and events are used to gauge the opinions and attitudes of the wider workforce, and this has helped Novartis to maintain its reputation as an employer of choice.
Since taking office in 2003, Andreotti has overseen a period of tremendous growth and success at Novartis. Through his astute decision-making, coupled with a commitment to innovation and corporate social responsibility, he has transformed the company into one of the world’s leading pharmaceutical firms. As the company’s financial performance continues to exceed expectations, it is clear that Lamberto Andreotti has truly made his mark at Novartis.
