by Ludwig Burger
FRANKFURT (Reuters) – Novartis raised its full-year profit forecast on Tuesday on strong drug sales and planned the spin-off and IPO of its Sandoz generic drugs division for the start of the fourth trimester.
The Swiss drugmaker said in a statement that it expects the group’s core operating profit to grow by a double-digit percentage in 2023, compared to previously expected single-digit growth.
Novartis shareholders will vote on the proposed spin-off and full separation from Sandoz at an extraordinary general meeting on September 15.
A listing on the SIX Swiss Exchange, combined with an American Depositary Receipt program in the United States, is expected to follow early in the fourth quarter, the company added.
The separate listing was previously scheduled for the second half.
The Swiss pharmaceutical group is also launching a share buyback program worth up to $15 billion, which is expected to be completed by the end of 2025, following the completion of its previous buyout. shares in June 2023.
(Report by Ludwig Burger, Nathan Vifflin)
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