Big pharma company Novartis announced on 25 August 2022 that it will spin off its generics and biosimilars arm, Sandoz.
Rumours about a potential spin-off started to circulate in 2021 [1] when Novartis announced a strategic review of Sandoz. This came after the Sandoz generic drug unit saw its global sales fall 4% to US$7.11 billion in the first nine months of 2021, making it down 17% in the US [2]. It has now been announced that the results of the review suggest that a complete split will be most beneficial to shareholders.
Vas Narasimhan, Chief Executive Officer of Novartis, said that in doing this, ‘Both companies would be able to focus on maximizing value creation for their shareholders by prioritizing capital and resource allocation, employing separate capital structure policies, and increasing management focus on their respective business needs’.
The Swiss company also noted that the separation will allow the two companies to pursue independent strategies. As the largest generics and biosimilars company in Europe by sales and the fourth largest in the US, Sandoz will now focus on leveraging its strong brand and sustain its leading global position as a key player in the biosimilars, antibiotics and generic medicines arena. Novartis will continue to expand its strong position in its five core therapeutic areas of haematology, solid tumours, immunology, cardiovascular and neurosciences, as well as in technology platforms.
The standalone Sandoz would be headquartered in Switzerland.
In creating this spin-off, Novartis is following other big pharma companies that have already separated from their generics and biosimilars arms, such as Merck and Organon [1, 3]. The Novartis–Sandoz split is expected to be finalized in late 2023.
Related articles
Private equity firms poised to bid for Sandoz takeover
Swiss Social Democrat’s for nationalization of Sandoz
Novartis divests dermatology and generic oral solids portfolios and part ways with Alcon
Baxalta and Momenta part ways on adalimumab biosimilar
| LATIN AMERICAN FORUM The new section of the ‘Latin American Forum’ on GaBI has been launched. The objective of this new section is to provide you with all the latest news and updates on developments of generic and biosimilar medicines in Latin America in Spanish. View the latest headline article: Panorama regulatorio de los biosimilares en América Latina Browse the news in the Latin American Forum! Register to receive the GaBI Latin American Forum newsletter. Inform colleagues and friends of this new initiative. FORO LATINOAMERICANO Se ha lanzado la nueva sección del ‘Foro Latinoamericano’ sobre GaBI. El objetivo de esta nueva sección es brindarle las últimas noticias y actualizaciones sobre desarrollos de medicamentos genéricos y biosimilares en América Latina en español. Ver el último artículo de cabecera: Panorama regulatorio de los biosimilares en América Latina !Explore las noticias en el Foro Latinoamericano! Regístrese para recibir el boletín informativo GaBI Foro Latinoamericano. Informe a colegas y amigos sobre esta nueva iniciativa.
|
References
1. GaBI Online - Generics and Biosimilars Initiative. Spinoff updates Merck’s Organon and Novartis Sandoz [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2022 Sep 16]. Available from: www.gabionline.net/pharma-news/spinoff-updates-merck-s-organon-and-novartis-sandoz
2. GaBI Online - Generics and Biosimilars Initiative. Swiss Social democrats for nationalization of Sandoz [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2022 Sep 16]. Available from: www.gabionline.net/pharma-news/swiss-social-democrat-s-for-nationalization-of-sandoz
3. GaBI Online - Generics and Biosimilars Initiative. Organon launches as new global women's health company and appoints leaders in Latin America [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2022 Sep 16]. Available from: www.gabionline.net/pharma-news/organon-launches-as-new-global-women-s-health-company-and-appoints-leaders-in-latin-america
Permission granted to reproduce for personal and non-commercial use only. All other reproduction, copy or reprinting of all or part of any ‘Content’ found on this website is strictly prohibited without the prior consent of the publisher. Contact the publisher to obtain permission before redistributing.
Copyright – Unless otherwise stated all contents of this website are © 2022 Pro Pharma Communications International. All Rights Reserved.
0
Post your comment