Novartis Tone on Roche Stake Has Changed, Sale Possible: Cowen
Novartis has said its Roche stake (6.3%, market value of $15b) has strategic value, however co. is no longer necessarily seeking a premium and the companies communicate more often than they did in the past, Cowen says in note. Cowen (outperform) cites comments from co. “Meet the Management” event yday, which was closed to media Says co. would use the proceeds to build therapeutic depth in each division Says co. won’t sell stake if dilutive; timing of sale ranges from “5 years from now or tomorrow” Novartis didn’t immediately respond to voicemails seeking comment on the Cowen note
NOTE: Novartis CEO said April 23 there was no change in co. position on Roche stake; said Oct. 6 co. was not under pressure to sell