Novartis wants to spin off its generics division and take it public

Zurich The Swiss pharmaceutical company Novartis wants to spin off its business with generic drugs and list it on the Swiss stock exchange. The independent generics division Sandoz is to have its headquarters in Switzerland and be listed on the Swiss stock exchange SIX, the drug manufacturer from Basel announced on Thursday.

Sandoz is to be completely spun off, according to the Novartis statement. American Depositary Receipts (ADS) are also to be listed in the USA. An exact schedule is not yet known.

Novartis put Sandoz to the test in October. The generic drug business accounts for about a fifth of Novartis’ annual sales at nearly $10 billion in sales revenue, but lags behind the dominant patent drug business in terms of profitability.

The group had so far kept all options open – from keeping the division in the group to separating it by selling it or going public. The spin-off would create Europe’s largest generics manufacturer.