Novartis raises outlook, maps out Sandoz spin-off
2023.07.18 01:44
© Reuters. FILE PHOTO: The company’s logo is seen at the new cell and gene therapy factory of Swiss drugmaker Novartis in Stein, Switzerland, November 28, 2019. REUTERS/Arnd Wiegmann/File Photo
By Ludwig Burger
FRANKFURT (Reuters) -Novartis on Tuesday raised its full-year earnings guidance on strong drug sales and mapped out the planned spin-off and stock market debut of its generic medicines division Sandoz for early in the fourth quarter.
The Swiss drugmaker said in a statement it expected group core operating income to grow by a low double digit percentage in 2023, up from high single digit growth previously projected.
Novartis shareholders will vote on the proposed Sandoz spin-off and complete separation at an extraordinary general meeting on Sept. 15.
A listing on the SIX Swiss Exchange, combined with an American Depositary Receipt programme in the United States, would follow early in the fourth quarter, the company added.
The separate listing was previously projected to happen during the second half.
The Swiss pharma major is also initiating a previously flagged share buyback programme worth up to $15 billion to be completed by year-end 2025, following the completion its previous share buyback in June 2023.
