Novartis Spinoff Sandoz Group Valued at $11.2 Billion in Trading Debut
October 04 2023 - 4:17AM
Dow Jones News
By Adria Calatayud
Generic-drug maker Sandoz Group was valued at around 10.3
billion Swiss francs ($11.18 billion) in its trading debut on the
SIX Swiss Exchange after it was spun off from Novartis.
At 0830 GMT, Sandoz's shares traded at CHF23.10, below the
CHF24.00 they hit at the opening bell. Novartis's shares slipped
3.85% to CHF88.40.
The market capitalization Sandoz achieved at the start of
trading was below the valuations estimated by some analysts.
Jefferies analysts said in a research note Tuesday that Sandoz
could be valued at between $12.3 billion and $16.2 billion, while
Deutsche Bank Research analysts said last month that its market cap
could range from $11 billion to $13 billion.
Sandoz's listing marks the end of an era for Novartis and is the
latest example of a pharmaceutical company offloading assets to
focus on innovative prescription medicines, following similar moves
from peers in recent years.
Novartis said its 2023 guidance remains unchanged after the
spinoff. It also intends to maintain a consistent approach to
capital-allocation priorities, including share buybacks and
dividend policy.
Sandoz generated $9.07 billion in net sales last year--most of
it from its generics business--and made a net profit of $848
million.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 04, 2023 05:02 ET (09:02 GMT)
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