Novartis has decided to separate from Sandoz, listing it on the stock exchange as an independent company. The goal is to make the two pharmaceutical companies more performing and the operation, if accepted by shareholders and 
board of directors, will take place in the second half of 2023.
Novartis announced in October last year that it would review all options for Sandoz. The decisions were communicated on Thursday morning: the company active in the production of generic drugs will be listed on the Stock Exchange as an independent company from Novartis. The transaction will ensure that Sandoz will become the largest generics company in Europe and a global leader in the field of biosimilars.
The announcement came Thursday morning from the Basel giant, according to which the operation - which will have to be approved by the board of directors and shareholders - will be completed in the second half of 2023.
The examination - again according to the top management of the pharmaceutical multinational - showed that the spin-off of Sandoz through a complete demerger is in the interest of the shareholders, who will be able to benefit from the potential future successes of a more focused Novartis and an autonomous Sandoz, which will have based in Switzerland and will be able to count on a strong and experienced organization.
For Novartis, separating Sandoz would further support its strategy to build an innovative medicines company with a stronger financial profile and better return on capital. In April, the pharmaceutical giant announced a global restructuring to contain costs. This includes a cut of 1,400 jobs in the Confederation and 8,000 worldwide.
At the announcement of the separation, one cannot but cast a glance at the past: Novartis itself was born in 1996 from the merger of Sandoz with Ciba-Geigy.
Related news: Novartis announces intention to separate Sandoz business to create a standalone company by way of a 100% spin-off
Novartis will lay off 1,400 employees in Switzerland, 700 of whom are managers, 8,000 worldwide
