Novartis is reviewing a range of options related to its generic subsidiary Sandoz, including separating or spinning off from the business.
This comes due to mounting price pressures in the off-patent pharmaceutical sector, as the Swiss pharmaceutical giant is focused on developing modern drugs to treat cancer and other diseases.
“We believe now is the time to examine the correct long-term strategic positioning of the Sandoz unit,” Vas Narasimhan, chief executive officer of Novartis, said Tuesday while announcing the company’s business results.
“All options will be on the table – whether to divest Sandoz’s business, or spin it off, through a sale or an IPO,” he added. “A decision must be made by the end of 2022.
The review comes in the wake of moves over the past years to separate Alcon eye care company, which is affiliated with Novartis, as well as give up a stake in the consumer health project.
Efforts to improve Sandoz’s performance have fueled speculation that Novartis will consider carrying out an initial public offering or spinning the company off.