Novartis to spin-off its biosimilar division Sandoz

Novartis announced its intention to separate its generics and biosimilar division, Sandoz, into a new publicly traded standalone company through a 100% spin-off. Sandoz will be headquartered in Switzerland and listed on the SIX Swiss Exchange, with an American Depositary Receipt (ADR) program in the US.

This strategic spin-off aims to maximize shareholder value by creating the number one European generics company and a global leader in biosimilars while allowing Novartis shareholders to participate fully in the potential future upside for both Sandoz and Novartis Innovative Medicines.

Moreover, the spin-off would enable enhanced focus and the ability to pursue independent growth strategies. According to Novartis, Sandoz is expected to deliver its next wave of growth based on the existing biosimilars pipeline of 15+ molecules, a strong and experienced management team, and organization. Additionally, Novartis aims to become a focused innovative medicines company with a stronger financial profile and improved return on capital.