Novartis completes Spin-off of Sandoz generics, biosimilars business
Sandoz, a global leader in generic and biosimilar medicines, celebrated the start of share trading on the Six Swiss Exchange as an independent company.
The new company is included in key Six market indices and has an investment-grade credit rating that gives it a strong competitive position. It is well placed for continued profitable growth as a standalone global leader and European champion in generic and biosimilar medicines, Sandoz said.
The opening bell-ringing ceremony at Six headquarters this morning marks the successful completion of the 100% spin-off from former parent company Novartis and the start of trading in Sandoz Group AG shares. The shares are included in the Swiss Performance Index, the Swiss Leader Index and other relevant Swiss indices; Sandoz ADRs (American Depositary Receipts) also will be traded as of today on the U.S. OTCQX.
[Read more: Novartis confirms Sandoz Spin-off for Oct. 4]
Sandoz board chairman Gilbert Ghostine said, “Today marks the dawn of a new era for Sandoz as an independent company, but our Purpose is unchanged: pioneering access for patients. It’s what we do best, have always done best and will always do best: making quality medicines available to more people, in more places, in more and novel ways.”
As outlined at the Sandoz Capital Markets Day in June, six strategic levers should drive long-term value: attractive market fundamentals, leadership and scale, multiple growth drivers, margin improvement, accelerated cash generation and a compelling sustainability story, the company said.
“As an independent company, Sandoz will be fully enabled to deliver on its purpose-driven strategy, which targets sustainable leadership in the growing and critical generics and biosimilars industry, said Richard Saynor, CEO of Sandoz.
“We already actively pioneer access for patients by shaping the global healthcare environment. We strengthen healthcare systems worldwide by delivering over $17 billion in annual savings in Europe and the United States alone and we reach some 500 million patients a year in over 100 countries. In doing so, we generate a total social impact estimated to be $180 billion annually. And we intend to make an even greater impact going forward.”
Sandoz noted that generics and biosimilars account for an estimated 80% of medicines used worldwide by volume, at about 25% of the total cost. Despite strong competitive pressures, the industry is set to grow steadily over the next decade, driven by underlying demand for these system-critical medicines.
“This is a truly historic moment for Novartis and Sandoz, as we begin new chapters as independent companies. With several consecutive quarters of sales growth, Sandoz starts out from a position of strength as a global leader in generics and biosimilars, and I am confident they are poised to deepen their impact on patients and society,” said Vas Narasimhan, CEO of Novartis. “Today, after more than $100 billion in transactions over the last few years, Novartis emerges as a fully focused innovative medicines company. We are entering this new era with strong financial performance and R&D momentum, and I’m more confident than ever in our ability to reimagine medicine for and with patients around the globe.”
[Read more: Novartis to separate Sandoz generics drug unit into standalone company]
With its new strategy unveiled in 2022, Novartis has now transformed into a focused innovative medicines business, concentrated on four core therapeutic areas: cardiovascular, renal and metabolic, immunology, neuroscience and oncology. Multiple significant in-market and pipeline assets in each of these areas offer the opportunity to address the high disease burden, and the potential for substantial growth, in particular in Novartis priority geographies of the United States, China, Germany and Japan.
In addition to two established technology platforms (Chemistry and Biotherapeutics), three next-generation platforms (Cell & Gene Therapy, Radioligand Therapy, and xRNA) are being prioritized for continued investment into new R&D capabilities and manufacturing scale. Novartis has an industry-leading, catalyst-rich pipeline with more than 150 projects in clinical development, the company said.