LONDON (Reuters) – Novartis’ soon to be spun off generics division Sandoz is expected to expand its pipeline and generate an additional $3 billion in net sales over the next five years, the Swiss group said on Thursday.
The company intends to carve out Sandoz in the second half of this year to sharpen its focus on its patented prescription medicines.
Novartis had kicked off a strategic review of Sandoz in 2021, examining a range of options including retaining the business, spinning it off or selling it – following a protracted period of underperformance driven largely by mounting pricing pressures in the off-patent drug sector.
Sandoz sells generics and biosimilars – cheap versions of biologic drugs made from living organisms – and generated about $9 billion in sales last year.
On Thursday, Novartis confirmed it expected Sandoz to generate mid-single digit net sales growth this year, and said it anticipated the growth rate would remain in this range over 2024 to 2028.
(Reporting by Natalie Grover in London; Editing by Himani Sarkar)
