Novartis' spin-off of the generic drug business has made new progress and will be completed in the second half of 2023

Novartis announced plans to divest its generic and biosimilar division Sandoz as a newly listed independent operating company with plans to complete the spin-off process
in the second half of 2023.

Novartis said sanders will become a major listed generic drug company in Europe, headquartered in Switzerland, to be listed on the Swiss exchange SIX Swiss Exchange and implement the American Depositary Security (ADR) program
in the United States.

It is understood that Sandoz currently has a variety of antibiotics, respiratory, tumors, central nervous system and other fields of a variety of generic drugs, as well as including adalimumab, rituximab, infliximab, etc.
including 8 biosimilar drugs, etc.
, in the future is expected to have 15 biosimilar pipeline products on the market
.

In fact, there have been rumors that Novartis intends to spin off Sandoz
.

In 2018, Novartis revealed a plan to grant Sandoz more autonomy, similar to the divestiture of other pharmaceutical companies, in a move designed to allow them to focus on high-risk, high-reward drug development business
.

Since then, news of Novartis' intention to strip Sanders has risen and fallen
.

For example, in 2019, former Novartis CEO Richard Francis left the news
that he was ready to spin off Sandoz.

The industry believes that the arrival of the patent cliff and the rapid decline in the price of generic drugs are the main reasons for the spin-off of
Sandoz.

According to Novartis' earnings report, Sandoz' core operating margin has fallen to 21.
4% in 2021 from 24.
2%
in the previous year.

Among them, in the United States, the unit price of Sandoz's products fell sharply, resulting in a significant reduction in final sales and profits
.

In addition, in China, Sandoz is facing the pressure of collection, and four products have won the bid
.

In the pharmaceutical industry, in fact, the spin-off of pharmaceutical companies has become the norm
.

On July 18 this year, GSK announced that its consumer healthcare company, GlaxoSmithKline Daily Health Products (China) Co.
, Ltd.
, has completed the spin-off from GlaxoSmithKline and officially becomes an independent consumer health-focused company, and has changed its name to Haleon
.

It is understood that Helion has begun trading on the London Stock Exchange (LSE) on July 18, local time in London
.

It opened at 330p and has a market capitalisation of around £
30.
5 billion.

Heron's predecessor, GlaxoSmithKline, has been growing in China for over 30 years
.

At present, Helian's product portfolio covers five categories: oral health, pain management, respiratory health, digestive health, and nutritional health
.

On July 26, 3M also disclosed that it plans to spin off its healthcare business into an independent public company, hoping to simplify the company's business and improve investor returns
.

The transaction is expected to close by the end of 2023, and upon completion of the spin-off, 3M will hold a 19.
9% stake
in the newly established medical company.

The spin-off will continue to be a materials science innovator serving the end market, while the newly formed medical company will focus on businesses such as wound care, oral care, medical IT and biopharmaceutical filtration
.

In addition to the above-mentioned multinational pharmaceutical companies, in recent years, many domestic and foreign companies such as AstraZeneca, Merck, Johnson & Johnson, Hualan Bio, Livzon Group and so on have taken excessive demolition-related actions
.

From the perspective of the purpose of the spin-off of pharmaceutical companies, the main reason is that the company hopes to obtain a good return on capital through the spin-off, and at the same time focus more on the core business
.

In this regard, the industry believes that in the pharmaceutical industry, the spin-off of pharmaceutical companies has become the norm
.

However, it should be noted that it is not easy for pharmaceutical companies to spin off subsidiaries to go public, and there have been several frustrated companies
in recent years.

In June this year, Baiyunshan announced the temporary suspension of the promotion of the listing of Guangzhou Pharmaceutical in Hong Kong stocks, taking into account factors such as
the expiration of the approval period issued by the CSRC on June 23 and the changes in the capital market environment in Hong Kong.

In June 2021, Lepu Medical also announced the withdrawal of the application of the spin-off holding subsidiary Lepu Diagnostics to be listed on the Science and Technology Innovation Board.
.
.
Disclaimer: In no event shall the information or opinions expressed herein constitute investment advice
to any person.