Multinational pharma plans milestone spin-off of generics business

Pharma News: A multinational pharmaceutical company has announced that its Board of Directors unanimously endorsed the proposal to separate its generics business. The decision to spin off its Sandoz division comes as Novartis responds to a period of underperformance driven by mounting pricing pressures in the off-patent medicines sector.

The proposed separation is planned for the fourth quarter of 2023, and shareholders at Novartis will play a pivotal role in the outcome. On September 15, 2023, they will have the opportunity to cast their votes on the proposed spin-off, setting the stage for a transformative chapter in the company’s history.

Post-spin-off, Novartis, aptly referred to as “RemainCo,” will shift its focus towards its Innovative Medicines business, honing in on five core therapeutic areas: cardiovascular, immunology, neuroscience, solid tumors, and hematology. This strategic realignment will allow Novartis to drive innovation and breakthroughs in these crucial medical fields.

Meanwhile, “Spin-Off” Sandoz will seize the reins to steer its destiny, concentrating its efforts on the key strategic areas of biosimilars, antibiotics, and generic medicines. This shift in focus promises to fuel Sandoz’s growth, ensuring its continued commitment to delivering high-quality, affordable medications to patients worldwide.

As part of the ambitious plan, Sandoz will take up residence in ‘Elsässertor,’ an iconic office building situated in the heart of Basel. The relocation from the Novartis Campus to this new headquarters, expected to be completed by mid-2024, represents a fresh start for Sandoz and showcases the company’s commitment to embracing change.

To lead this endeavour, Sandoz has appointed Richard Saynor to the role of Chief Executive Officer, while Gilbert Ghostine will serve as Chairman of the Board of Directors. Vas Narasimhan, Chief Executive Officer of Novartis, will continue to spearhead the company’s dynamic initiatives.

Sandoz is also making moves to expand its global footprint. The company recently announced an investment of approximately USD $90 million at its site in Ljubljana, Slovenia. This investment will give rise to a dedicated Sandoz Biopharma Development Centre, slated to be operational by 2026. The Ljubljana site will become a pivotal location for biosimilar product development, generating approximately 200 new full-time jobs and significantly bolstering Sandoz’s capabilities in drug substance and drug product development.

In line with this commitment, Sandoz is also investing at least USD $400 million in a biologics manufacturing plant in Lendava, Slovenia, in addition to expanding its biosimilar development capabilities at its facility in Holzkirchen, Germany. Sandoz’s capabilities in Ljubljana have already established the company as a leader in technologically complex generic pharmaceuticals, and the new Biosimilar Development Centre will take this success to even greater heights.

“We are thrilled about the potential of the new Biosimilar Development Centre in Ljubljana,” said Claire D’Abreu Hayling, Chief Scientific Officer at Sandoz. “This cutting-edge facility will help us meet the surging global demand for biosimilars and make an even more significant contribution to the long-term viability of healthcare systems worldwide.”

In reimagining healthcare, Health Industry Hub^TM is the ONLY one-stop-hub uniting the diversity of Pharma, MedTech, Diagnostics & Biotech sectors to inspire meaningful change. The exclusive leadership and influencer podcasts and vodcasts offer unparalleled insights and add immense value to our breaking news coverage.

The Health Industry Hub^TM content is copyright protected. Access is available under individual user licenses. Please click here to subscribe and visit T&Cs here.