Novartis will spin off its generics business, Sandoz, in 2023

MADRID, 25 Ago. (EUROPA PRESS) -

The Swiss pharmaceutical company Novartis has confirmed that it expects to carry out the 100% separation of Sandoz, its division of generics and biosimilars, into a new independent company based in Switzerland and listed on the markets of the Swiss country and the United States next year.

The segregation of Sandoz, which last year reached a turnover of 9,631 million dollars (9,676 million euros), could be completed in the second half of 2023, once certain conditions are met, including consultation with the works councils and the employee representatives, general market conditions and final approval by the Novartis board of directors and shareholders.

"A 100% spin-off is best for shareholders," said Joerg Reinhardt, chairman of the Novartis board of directors, noting that the spin-off of the business would allow shareholders to benefit from the potential future successes of a more focused Novartis and a more focused Sandoz. independently, offering differentiated and clear investment theses for individual businesses.

"Sandoz would become the number 1 listed European generics company and world leader in biosimilars based in Switzerland," he added.

For his part, Vas Narasimhan, CEO of Novartis, defended that the separation of Sandoz would allow both companies to focus on maximizing the creation of value for their shareholders by prioritizing the allocation of capital and resources, employing separate capital structure policies and increasing management's focus on their respective business needs.