Novartis' Generic Business Spinoff: Plans Sandoz Spin-Off In Early October, Proposes Share Distribution
Portfolio Pulse from Vandana Singh
Novartis AG plans to spin off its Sandoz unit on October 4, ending the coexistence of its generic and prescription drugs businesses. The separation will occur through a distribution of Sandoz shares to existing Novartis shareholders. Sandoz generated pro forma 2022 net sales of $9.12 billion and a net profit of $677 million. After the spin-off, Sandoz will remain dependent on Novartis for technical development and manufacturing for a significant time. Sandoz's potential market capitalization could be approximately $18-$25 billion.
August 18, 2023 | 1:04 pm
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Novartis AG is spinning off its Sandoz unit, which could impact its stock price. Sandoz's potential market capitalization could be approximately $18-$25 billion.
The spin-off of Sandoz could impact Novartis' stock price as it represents a significant change in the company's structure. The potential market capitalization of Sandoz indicates the value of the unit and its importance to Novartis. However, the impact on the stock price will depend on how investors perceive the spin-off and its potential benefits or drawbacks for Novartis.
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