Novartis exploring options for Alcon, including separation
25 JAN 2017
Swiss pharma group Novartis [VTX:NOVN] announced on Wednesday that it is considering options for Alcon, its contact lens care company.
In its 2016 financial results, Novartis said the review would consider a range of alternatives, including retaining the business or a separation by way of a spin-off or an initial public offering.
Novartis reported 2016 revenues of USD 48.5bn and core operating income of USD 13bn. Alcon Division net sales were USD 5.8bn.
An excerpt from the announcement follows:
Novartis is considering options for the Alcon Division. The review will explore all options, ranging from retaining the business to separation via a capital markets transaction (e.g. IPO or spin-off), in order to determine how to best maximize value for our shareholders. The review will be conducted during the course of 2017 and in a manner such that Alcon Division associates can fully focus on the unit’s return to growth.
The Alcon Division comprises leading surgical and vision care (contact lens and lens care solution) businesses, both of which are leaders in their respective segments. Novartis believes that the Alcon Division is a highly attractive business, with a strong customer base and led by a strong management team. Novartis is exploring whether there are additional value-maximizing opportunities for the Alcon Division as an independent company or otherwise.
The ophthalmic pharmaceutical portfolio is now fully integrated into our Innovative Medicines Division and will not be part of the review announced today.
Novartis expects to provide a status update on the review towards the end of 2017.