Novartis subsidiary Alcon is now an independent company
09 April 2019
Novartis completed the spin-off of the Alcon eye care devices business through a dividend-in-kind distribution. The Basel pharma giant reports it is now positioned for sustained growth and announced the launch of potential blockbusters.
Basel bridge Novartis Campus Rhine River Innovation Business
The successful execution of the spin-off of Alcon allows Novartis to now fully focus on its medicines, the Basel pharma company reported in a press release. This will also lead to higher group margins. In particular, it plans to improve the Innovative Medicines divisions, in which Novartis is aiming for core margins into the mid-30s by 2022. After granting shareholders a dividend of 2.85 Swiss francs per share for 2019, it plans to pay a “strong and growing annual dividend” in future. The share buyback of up to US$ 5 billion announced in June 2018 is expected to be completed this year.
For achieving sustained growth going forward, Novartis is looking to launch ten potential blockbusters in the next two years. A blockbuster is a drug with annual sales of at least US$ 1 billion. The company also has an additional 20 potential blockbusters on the horizon.
Shares in the spin-off eye specialist Alcon are now listed on the SIX Swiss Exchange and on the New York Stock Exchange. The company was valued at around US$ 27 billion on flotation. “This is an incredibly exciting day for both Novartis and Alcon,” said CEO Vas Narasimhan in the Novartis press release. Alcon has achieved continuous growth and gone public from a position of great strength. “At Novartis, we continue to reimagine ourselves as a leading medicines company powered by breakthrough medicines, data science and advanced therapy platforms.”