Novartis Directors Sign Off Sandoz Subsidary

In their Q2 financial report, Novartis revealed that Sandoz, their generics and biosimilars subsidiary, has been board-approved to become its own publicly listed company.

The decision to split Sandoz into its own entity was first declared back in August of last year, with Novartis actively working to materialise this intention in Q4 of this year.

At a general meeting scheduled for the third week of September, Novartis shareholders will have the opportunity to vote on the potential subsidiary. One of the knock-on effects of the split is that there will be a corresponding decrease in the share capital of Novartis, which will have an impact on shareholders.

With a net revenue of $2.4 billion, Sandoz sales increased by 8% according to a Q2 financial report. Europe was the most significant market for this period, contributing $1.3 billion to their economic activity.

Novartis’ new strategy includes embracing the Sandoz entity as part of its effort to become a “pure-play” manufacturer of breakthrough pharmaceuticals.

The business intends to proceed with their objective to focus investments into production capacity and R&D infrastructure.

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