Novartis leans toward spinoff of generic drugs unit - Bloomberg News

1 minute read

A sign marks the Novartis Institutes for BioMedical Research facility in Cambridge, Massachusetts, U.S., June 16, 2021. REUTERS/Brian Snyder

Register now for FREE unlimited access to Reuters.com

June 30 (Reuters) - Novartis (NOVN.S) prefers a spinoff of its generic drug unit over a potential sale to private equity firms, Bloomberg News reported on Thursday, citing people familiar with the matter.

A challenging macro environment for leveraged buyouts has made the sale route difficult and Novartis sees a separate listing of the Sandoz business as more likely, the report said. (https://bloom.bg/3yt7Iu2)

The Swiss pharmaceutical group in October said it had started a strategic review of the Sandoz unit as price pressures mounted in the off-patent drug sector. read more

On Thursday, Novartis reiterated its previous statement that "the strategic review is ongoing, all options remain on the table and the company plans to provide an update before the end of the year".

Register now for FREE unlimited access to Reuters.com
Reporting by Manas Mishra in Bengaluru; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.