Novartis Updates Planned Sandoz Spin-Off
Novartis has released an update on its planned spin-off of Sandoz, its generics and biosimilars business.
The Novartis Board of Directors has unanimously endorsed the proposed separation of Sandoz to create an independent company by way of a 100% spin-off. As a next step, shareholders of Novartis will vote on the proposed spin-off and a related reduction of the share capital of Novartis at an Extraordinary General Meeting, planned to be held on September 15, 2023.
The proposed spin-off is planned to occur early in the fourth quarter of 2023. In addition to Novartis shareholder approval, completion of the proposed Sandoz spin-off is subject to satisfaction of certain conditions, including obtaining the necessary approvals for the listing of the Sandoz shares, no order prohibiting (and no other event outside the control of Novartis) preventing the spin-off, and no material adverse change. Once the spin-off is complete, Sandoz is planned to be listed on the SIX Swiss Exchange, with an American Depositary Receipt program in the US.
Separately, Novartis is initiating an up-to $15 billion share buyback to be completed by year-end 2025, following completion of a previously announced share buyback in June 2023.