Novartis AG is planning to spin off its generics and biosimilars division Sandoz and list it as an independent company in Switzerland, a move that will enable Novartis to focus on innovative medicines.
The Swiss pharmaceutical company NOVN,
said on Thursday that Sandoz will be based in Switzerland and listed on the SIX Swiss Exchange, with a US deposit-taking program
“A spinoff would allow our shareholders to benefit from the potential future successes of a more focused Novartis and an independent Sandoz, and would provide differentiated and clear investment propositions for the individual businesses,” said Joerg Reinhardt, chairman of the board of directors of Novartis.
Sandoz has a strong presence in Europe as well as the US. It generated $9.6 billion in sales last year. The company will become Europe’s top public generics company, Mr. Reinhardt said.
Novartis expects to complete the process in the second half of 2023.
“For Novartis, the separation of Sandoz would further support our strategy of building a focused innovative medicines company, with depth in five key therapeutic areas and strength in technology platforms,” said Novartis Chief Executive Officer Vas Narasimhan.
Write Mauro Orru at email@example.com; @MauroOrru94