Novartis to Spin Off Sandoz Unit

Novartis plans to spin off its generics unit Sandoz as part of an effort to focus on its innovative pharmaceuticals.
 
This past October the company began a strategic review of Sandoz, exploring options including spinning it out, selling it or keeping the business as is. To date Novartis has not received any formal binding offers and according to the company has determined the spin of is the best way to separate the two companies.
 
Sandoz sales were flat at $9.6 billion last year. Sandoz sells generics and biosimilars.
 
The transaction, is expected to be completed in 2H23, subject to market and customary conditions, final board endorsement and shareholder approvals.
 
Novartis is also implementing a restructuring program that involves eliminating as many as 8,000 jobs, or about 7.4% of its global workforce.
 
In other recent strategic moves, Novartis announced in December a share buyback of up to $15 billion to be completed by the end of 2023, funded with proceeds from the sale of its approximately 33% stake in Roche for $20.7 billion. In 2019 Novartis spun off its Alcon eye care business.