Swiss Novartis creates Europe’s largest generics maker
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Swiss pharmaceutical company Novartis is set to spin off its Sandoz generics division into a separate company. About this Novartis stated today, August 25th. This will create Europe’s largest manufacturer of generics. Last year, Sandoz sales reached $10 billion.
Novartis said it began reviewing its asset portfolio last year and decided to focus on newer, patent-protected drugs. The company has been trying to cut costs lately: it plans to save $1 billion by 2024 and is looking to cut 8,000 employees.
Novartis CEO Vas Narasimhan said the company will consider offers to buy Sandoz, if any, but is considering spinning it off as its main option. The headquarters of Sandoz, as before, will be located in Switzerland, its shares will be traded on the local stock exchange, and the head of this division, Richard Seynor, will become the general director. The creation of a separate company is expected to be completed by the second half of 2023.
Many drug companies have recently decided to focus on innovative drugs, buying up manufacturers of such drugs and selling or spinning off divisions for less modern drugs. So, Novartis itself in 2019 sold its ophthalmological division to Alcon, and Pfizer and Mylan singled out its generics divisions to Viatris with $12 billion in revenue. As early as this year, GSK singled out over-the-counter drug business to Haleon.
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