Novartis looks at options to keep Nyon site open

Novartis looks at options to keep Nyon site open

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ZURICH (Global Markets) - Swiss drugmaker Novartis (NOVN.VX) said it was looking at alternatives to closing a Swiss plant following a strike over its cost-cutting plans, but could make no promises to keep open a site it said was not financially viable.

Novartis said last month it would cut 1,100 jobs in Switzerland and close two sites there over the next three to five years, sparking an outcry from employee representatives and prompting demonstrations in Basel and Nyon.

Chief Executive Joe Jimenez, who has faced criticism from unions for not contacting workers, met with representatives at the drugmakers' plant in Nyon on Friday.

"The constructive talks with the Canton of Vaud government and the Federal government are well on track," Jimenez said in a statement.

"However, I would also like to point out that Novartis is facing a challenging future and therefore further cost reductions are necessary if the company wanted to keep its R&D spending strong."

The 320 employees at the Nyon plant, which makes over-the-counter products for Europe, went on strike last Wednesday in protest against the planned closure of the site as Novartis axes jobs to keep costs under control in a tough pricing environment.

(Reporting by Caroline Copley)