Finally, Novartis will not sell its subsidiary specializing in generic drugs but will introduce it entirely on the stock market in Switzerland and the United States..
This is the fashionable operation in the pharma sector: the separation, in one way or another, of consumer or less strategic activities from their parent company. GSK has just, for example, introduced a good part of Haleon on the stock market. In a few weeks, Johnson & Johnson should also specify the contours of the split of its large health subsidiary…
This is the fashionable operation in the pharma sector: the separation, in one way or another, of consumer or less strategic activities from their parent company. GSK has just, for example, introduced a good part of Haleon on the stock market. In a few weeks, Johnson & Johnson should also specify the contours of the split of its consumer health subsidiary (Neutrogena, Biafin, Johnson’s baby products, Petit Marseillais, etc.). And last week, as announced, Novartis detailed the future it has in store for Sandoz as part of its vast restructuring. As a reminder, Sandoz is the European leader in generic drugs. The Swiss company manufactures antibiotics, painkillers, cancer drugs as well as treatments for heart and respiratory diseases whose patent has expired. It is also specialized in biosimilars (a product highly similar to a reference drug and authorized on the market after the period of exclusivity and expiry of the patent). Sandoz recorded a turnover of 9.6 billion in 2021, almost 20% of that of the Novartis group. Finally, Sandoz will not be sold (a fund was a candidate but withdrew). Like Alcon, another subsidiary, in 2019, it will rather be listed on the stock exchange in Switzerland as well as in the United States but in the form of certificates of deposit. Its new headquarters will be based in Switzerland. Novartis, subject to shareholder approval, hopes to complete the transaction in the second half of 2023. The latter comes within the framework of a major restructuring of the group which should lead to savings of 1 billion dollars by 2024. About 8,000 jobs (out of a total of 108,000) could be cut. The Belgian impact is not yet known.
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