Novartis – Sandoz: the spinoff finally arrives

On September 15, Novartis shareholders approved by 99.7% the spinoff of Sandoz, the group’s division specializing in generics. Thus, investors will receive one Sandoz share for every five Novartis shares held. The actual separation should take place around October 4. Novartis has been preparing for this separation for more than a year. Indeed, this operation is part of the group’s long-term strategy which consists of focusing on the more lucrative activities of research into new cutting-edge drugs, particularly in the field of oncology. Regarding Sandoz, exposure to the European market as well as a portfolio of biosimilars should favorably differentiate the company compared to its American competitors and justify that the stock trades at a premium compared to its peers.