Novartis has signed a definitive agreement to sell its Gerber baby food business to Nestlé for USD 5.5 billion in cash. This completes Novartis' divestiture programme following its strategy to focus on healthcare with pharmaceuticals at the core. This transaction, which requires customary regulatory approvals, is expected to be completed by the second half of 2007.

"Over the past decade we have continuously invested in R&D, strengthening our innovation power and building our healthcare businesses, particularly pharmaceuticals, while divesting over 50 per cent of our non-core, non-healthcare businesses," said Dr Daniel Vasella, chairman and CEO of Novartis. "This transaction is also the right move for Gerber, as it will become a priority business in a leading global nutrition company."

Novartis has appointed Joseph Jimenez as CEO of its Consumer Health division as of April 16. He replaces Paul Choffat, 58, who is retiring at the end of April after successfully leading the division for many years. Jimenez, a 47-year-old American, joins from Blackstone, a leading private equity firm. Previously he served as president and CEO of the HJ Heinz Company in Europe and the US. Until recently he was a non-executive director of AstraZeneca plc. Jimenez will be based at the division's headquarters in Basel.