Swiss pharmaceutical giant Novartis has announced plans to spin off the Sandoz subsidiary, specialized in generic medicines, and to list it on the Zurich stock exchange and in the United States to create the largest generics company in Europe and a more focused parent company.
"Both in terms of innovative medicines and Sandoz's activities, the spin-off would allow for a greater focus and would allow for the pursuit of independent growth strategies", Novartis explained in a note, anticipating that Sandoz, in a standalone version, will have based in Switzerland and will be listed on the Six Swiss Exchange, with an American Depositary Receipt program in the United States.
The project, which should be tax-neutral for Novartis, will have to be approved by the shareholders of the company which, however, expects to complete the operation in the second half of 2023.
Sandoz in 2021 has achieved revenues of $9,6 billion and has and served over 100 markets globally with a strong presence in Europe, the United States and the rest of the world. Sandoz would build on its strong brand and underpin its position as a global leader by continuing to invest in the key strategic areas of biosimilars, antibiotics and generic medicines, Novartis said it confirmed plans to move forward with the implementation of its new organizational structure announced in April 2022, while making a parallel commitment to its strong investment grade rating and capital allocation priorities, including growing annual dividend.
