After Spin-Off Sandoz Sets Out To Make Cheap Medicine Profitable

2023-10-07 02:13:24

(MENAFN- Swissinfo) Sandoz has become the latest division to break away from the Swiss pharmaceutical giant Novartis. On Wednesday, Sandoz began trading on the SIX Swiss exchange, becoming one of the largest stand-alone generic companies in the world.

“Today marks the dawn of a new era for Sandoz as an independent company, but our Purpose is unchanged: pioneering access for patients,” Sandoz chairman Gilbert Ghostine said in a press release link

The spin-off, which was first announced last August, should be good for Novartis' bottom line. It allows them to focus on so-called innovative medicine - patented medicine in disease areas like oncology and with technologies like gene therapy that could dramatically improve health outcomes and offer big payouts to the company.

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But Sandoz becomes an independent company at a time of extreme pressure on generic makers. There are more demands from governments to lower drug prices and make medicine affordable all while fending off growing competition, especially from Asia.

Until Wednesday, Sandoz had the financial cushion of being part of the massive Novartis structure. Sandoz division global sales were $9.2 billion (CHF8.4 billion) in 2022 compared to $41.3 billion from the innovative medicine division of Novartis.

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