In fact, the event was something completely different. Last week, Vasar NARASIMHAN, Managing Director of Novartis, introduced the community of product communities to the investor community to help boost the pharmaceutical business. After lunch, he had a small bomb explosion: Sandoz's copy was an independent entity for two years. And check out the newly created Sandoz Novartis "All Strategic Opportunities," participants report.
Simple English: Novartis is going to Sandoz spin-off. And the "strategic opportunity review" means that the group could sell the distribution in the medium term.
Novartis does not deny
This letter has arrived with employees and analysts. "Sandoz is divided, this is the unofficial information we get," says employee representative. In my opinion, the management's announcement of a review of all the strategic options must be understood to mean that Sandoz is to be sold in the long run, "says Birgit Kulhoffs, private banking pharmacist Rahn + Bodmer.
Novartis does not deny separation plans. When asked if Sandoz is to be sold and any sale, the Group responds with a cursory statement: "Our goal is to transform Sandoz into a differentiated, non-patented, focused and agile world market leader." "In this way, we will continue to ensure close alignment with Novartis's strategy to become a targeted drug company focusing on truly unmet medical needs from market to market."
Increase the schedule
With Sandoz spin-off Novartis, President Jörg Reinhardt, together with Director-General Vas Nasasimhan, removes the aging of the recent Novatorist founder Daniel Vasal's strategy. Following the merger of Sandoz and Ciba-Geigy in Novartis in 1996, Vasella pursued a diversification strategy. a company should not be too dependent on risky pharmaceutical activity. That's why Vasella also took more than $ 50 billion in veterinary medicine, vaccines and over-the-counter medicine, the world leader in ophthalmology Alcon, and combined a copy with the traditional name Sandoz.
Price pressure in the US
Four years ago, the new president, Jörg Reinhardt, started implementing this strategy. Veterinary medicines and vaccines have been sold, and the OTC business, for example, Voltaren, has been integrated with the Glaxo Smith Kline (GSK), which Basler has refused this year. Alcon is scheduled to be released in 2019, and Novartis has recently submitted applications to the US Securities and Exchange Commission.
Now Sandoz is coming to the series. The division consists of three parts: classical copy medicine, such as the Ibu Sandoz painkiller, antibiotics and biosimilaras, which are counterfeits in biotechnological products, such as Roche cancer bestseller Mabthera. Business with chemically produced generic medicines suffers from huge price pressures, especially in the United States. As a result Sandoz's revenue and profit fell during the first nine months of the year. In September, Novartis already sells part of the US business.
Now, it seems, is going to complete the separation. Because without sales intentions efforts to sell Sandoz do not make sense. "The generic drug business is definitely not the benefit of Novartis's CEO Vas NARASIMHAN," says Stefan Schneider, a bank's vontobel pharmaceutical expert. It reduces the reserve by about 20 percent. Even in the pharmaceutical business, the 30% profit margin is too small – Narasimhan. He wants to reach 35 percent.
Consequences for Switzerland
In the case of Switzerland, Sandoz was subject to potential sales consequences: of the 13,000 Sandoz employees worldwide, 270 worked in Switzerland: 140 in Basel and 130 in Rothcross. And they are busy managing and selling.
However, it is questionable whether Novartis also wants to get out of the company with biosimilars. These are biotechnical simulators. Their sales are growing in two-digit numbers. For example, Sandoz has been approved worldwide for seven biotech forged products, including Rheuma bestseller Humira.
Sandoz canceled the registration in the United States
"Whether Sandoz will remain in the Group or not, I believe that the biostimber business will increase sales and profits," says Vontobel expert Schneider. Recently, the business failed, as Sandoz withdrew the US legislation on Mabthera / Rituxan imitation of the Roche Cancer Drug.
Due to the spin-off of Sandoz, Novartis is still a construction site. "It makes it harder for investors to look at their existing business," says Vontobel expert Schneider, "Novartis comes from a year of transition for a transitional year."
Created: November 14, 2013 at 9:49 pm