Swiss pharmaceutical giant Novartis (NYSE: NVS) has announced October 4 of this year as the tentative date for the complete spin-off of its generics and biosimilars subsidiary, Sandoz (FRA: D8Y0). Prior to this, a crucial shareholder meeting is scheduled for September 15, where a vote will be held on the distribution of a dividend-in-kind and a reduction of share capital related to the split. The plan allows every 5 Novartis shares to result in the issuance of 1 Sandoz share.
Shareholder Meeting and Dividend-in-Kind Distribution
The upcoming shareholder meeting on September 15 is pivotal for the spin-off process, as it will determine the distribution of shares and the reduction of Novartis’ share capital to facilitate the separation. This move is in line with Novartis’ strategy to create a global leader in the generics and biosimilars market through Sandoz and to focus the parent company on its core business, thereby maximizing shareholder value.
Separation Plan and Non-Core Business Unit Considerations
The plan to separate Sandoz was first presented in 2022, with the goal of enhancing the company’s competitiveness in the generics and biosimilars sector. Additionally, following the completion of the Sandoz restructuring, Novartis was reported last year to be considering the sale of certain ‘non-core’ business units. This strategic move aims to streamline Novartis’ operations and allocate resources more effectively.-Fineline Info & Tech
