Novartis has confirmed plans for the complete spin-off of its generics and biosimilars business, Sandoz, following approval from shareholders.

New Sandoz Group shares and American depositary receipts (ADRs) will begin trading on 4 October 2023.

Sandoz will be included in the Swiss Performance Index, the Swiss Leader Index and other Swiss indices.

Novartis has also obtained approvals to list Sandoz shares from regulatory authorities including the SIX Exchange Regulation.

The latest development follows the company’s announcement in August 2022 of plans to separate the Sandoz business and establish an independent company. 

Sandoz obtained $3.75bn (SFr3.42bn) in debt financing from a number of banks that will provide $1.25bn via a revolving credit facility, which will serve as an undrawn backstop provision.

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By GlobalData

The spin-off will conclude with the distribution of Sandoz shares and ADRs in a 1:5 ratio to Novartis shareholders and ADR holders, respectively.

In a press release, Novartis noted: “Completion of the proposed spin-off is subject to satisfaction of certain conditions, including no event outside of the control of Novartis preventing the spin-off and no material adverse change. 

“There can be no assurance regarding the ultimate timing of the proposed transaction or that the transaction will be completed.”

In August 2023, Sandoz also acquired global brand rights for Astellas’ antifungal agent Mycamine (micafungin sodium).