[ad_1]
The once-prolific Novartis healthcare conglomerate is looking to focus on so-called new drugs and cutting-edge technologies.
Photo:
Arndt Wiegmann / REUTERS
Novartis AG
NVS -0.88%
He said plans to spin off the generics and biosimilars division Sandoz and list as an independent company in Switzerland would allow Novartis to focus on new drugs.
The Swiss pharmaceutical company said Thursday that Sandoz will be located in Switzerland and will be listed on the SIX Swiss exchange with the American Depositary Receipt Program in the United States.
Novartis said in October that it was considering a sale or divestment of the business, a move that would see the once-pervasive health care focus solely on prescriptions. Over the past decade, it has produced veterinary drugs, vaccines, over-the-counter products, contact lenses and parts for eye surgery.
In the year Since the appointment of Novartis CEO Vas Narasimhan as CEO in early 2018, it has doubled down on so-called new drugs and cutting-edge technologies such as gene therapy and radiopharmaceuticals, which deliver radioactive particles near tumors for radiotherapy.
Sandoz, like many drugmakers, has struggled with falling prices in the US in recent years. Generic drugs are cheaper versions of prescription drugs that have expired. While their prices are often much lower than those of counterfeit brand-name drugs, increased competition has pushed those prices down in recent years.
In response to increased competition, Novartis has steered Sandoz toward higher-value biosimilars, which are biologic drugs made using living organisms. The unit, which accounts for about a fifth of Novartis’ total sales, has proven to be a drag on the company’s growth in the past.
Sandoz has a strong presence in Europe and the US, with sales of $9.6 billion last year. Novartis expects to complete the process in the second half of 2023.
In mid-August, President Biden signed into law legislation aimed at lowering prescription drug prices and boosting the renewable-energy sector. The bill would impose new taxes on large corporations to reduce the federal deficit. Photo: Mandel Ngan/AFP/Getty Images
Write Mauro Orru at mauro.orru@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
On August 26, 2022, the print edition featured ‘Novartis to Spin Off Sandoz Drugs Unit’.
[ad_2]
Source link
