Time for radical change at Novartis

Swiss daily newspaper Tagesanzeiger reported that Novartis – with a CHF223bn market capitalization – aims at splitting Sandoz division from the rest of the company, thus making it completely independent. New 42-year-old CEO Vas Narasimhan reportedly said so while dining with some investors. Narasimhan has never made a secret of wanting Novartis to become a market leader in the fields of personalized medicine and oncology; this is why he is reorganizing the company by means of divestments, redundancies (especially in the R&D department), and acquisitions.

It is worth recalling that last summer, Novartis sold Sandoz US units to India’s Aurobindo Pharma for $900m.

Moreover, a few days ago rumors spread about frequent meetings between Novartis and the investor community as regards the possibility that its subsidiary (ophthalmic products) go public. It could be valued at $49bn.

Novartis’ shares (Zurich) fell over 3% in the past week.

 

(Source: Tagesanzeiger)