Novartis To Spinoff Sandoz Business To Create #1 European Generics Company

Novartis AG NVS plans to spin off Sandoz, its generics and biosimilars division, into a new publicly traded standalone company.
According to Novartis, Sandoz, which generated nearly $10 billion in sales last year, will emerge as Europe's leading generics company with key strategic areas of Biosimilars, Antibiotics, and Generic Medicines.
Related: Novartis Posts Mixed Q2 Earnings, Expects Improved Earnings At Sandoz.
The company initiated a strategic review of the business last October.
The company has not received any formal binding offers for Sandoz - but if any "highly attractive" bids did emerge, Novartis would fully consider them, CEO Vas Narasimhan told a media briefing.
Per previous reports, EQT, the Struengmann family of Germany, Blackstone, and Carlyle showed interest in buying Novartis' generic arm.
Also Read: Novartis To Strengthen Pipeline, Boost Productivity With New Organizational Structure.
The standalone Sandoz is expected to be headquartered in Switzerland and listed on the SIX Swiss Exchange, with an American Depositary Receipt program in the U.S. Richard Saynor would remain CEO following the spin-off.
Price Action: NVS shares are up 1.06% at $84.50 during the premarket session on the last check Thursday.
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