1400 GMT - Novartis is among the most mentioned companies across news items over the past 12 hours, according to Factiva data, after the Swiss pharmaceutical company said it plans to spin off Sandoz, its generics-and-biosimilars division. Novartis expects to complete the process in the second half of 2023. The standalone company will be based in Switzerland and will be listed on the SIX Swiss Exchange with a depositary receipt program in the U.S., Novartis said. Novartis had said in October that it was reviewing Sandoz, and according to UBS analysts, spinning it off was the most likely outcome and the move was therefore unsurprising. The analysts warn in a note, however, that service agreements between the two companies may be needed and that it may take time before margin efficiencies are achieved. There is a risk of a muted market reaction as well, Citi analysts say in a research note. Sandoz faces competition in the generic medicines business which could damp near-term interest in the company. "We await to see the proposed capital structure for Sandoz and the resultant impact for Novartis' business development efforts," Citi says. Dow Jones & Co. owns Factiva. (pierre.bertrand@wsj.com)

 

(END) Dow Jones Newswires

August 25, 2022 10:16 ET (14:16 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
Novartis (NYSE:NVS)
Gráfico Histórico do Ativo
De Nov 2022 até Dez 2022 Click aqui para mais gráficos Novartis.
Novartis (NYSE:NVS)
Gráfico Histórico do Ativo
De Dez 2021 até Dez 2022 Click aqui para mais gráficos Novartis.