Released November 28, 2018 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Swiss pharmaceutical major Novartis International AG (NYSE:NVS) (Basel, Switzerland) is pushing ahead with its planned spinoff of its Alcon eye-care business in the first half of next year.
The company has announced that Alcon has filed an initial Form 20-F registration statement with the U.S. Securities and Exchange Commission (SEC) in relation to the spinoff of the Switzerland-based company as a separate publicly traded company. It is planning investor days in New York and London in the coming months. The decision to offload Alcon could be worth up to $35 billion to Novartis, according to its previous Chief Executive Officer Joe Jimenez.
Alcon reported sales revenues of $6.8 billion last year from its two key streams: surgical products including implants and specialist equipment for dealing with many eye disorders including cataracts and its vision care stream that manufactures contact lenses and other products. The company has predicted that the market for its combined products can bring in $23 billion annually and that it will grow by an average of 4% per year over the coming five years.
Novartis announced the proposed spinoff earlier this summer claiming that it was part of its overall plan to focus of higher margin medicines. At the time, Vas Narasimhan M.D., Chief Executive Officer of Novartis, said: "As we progress towards the spinoff, we are confident in the potential of Novartis and Alcon as separate companies to increase shareholder value. The transaction is expected to support our transformation to become a more focused innovative medicines company. For Alcon, it means more strategic focus and flexibility to pursue compelling growth opportunities in eye care devices, where it has the strongest portfolio and unmatched ability to serve patients worldwide."
Novartis bought Alcon from Nestlé for $50 billion in a number of stages in a deal that closed in 2010. The eye drugs part of the business was transferred to Novartis' main pharmaceuticals division but the remaining sections have struggled over the years.
More recently, Industrial Info reported on plans by Novartis to cut 2,550 jobs in Switzerland and the U.K. as the company continues its shift to higher-margin drugs. The decision will hit its home country hardest, with up to 1,500 jobs to be shed across four production plants at Basel, Stein, Locarno and Schweizerhalle. The company currently employs 13,000 people across Switzerland. In the U.K. the company will shut its Grimsby pill production plant with the loss of up to 400 jobs. For additional information, see October 8, 2018, article - Novartis Axing 2,550 Jobs in Switzerland and the U.K..
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The company has announced that Alcon has filed an initial Form 20-F registration statement with the U.S. Securities and Exchange Commission (SEC) in relation to the spinoff of the Switzerland-based company as a separate publicly traded company. It is planning investor days in New York and London in the coming months. The decision to offload Alcon could be worth up to $35 billion to Novartis, according to its previous Chief Executive Officer Joe Jimenez.
Alcon reported sales revenues of $6.8 billion last year from its two key streams: surgical products including implants and specialist equipment for dealing with many eye disorders including cataracts and its vision care stream that manufactures contact lenses and other products. The company has predicted that the market for its combined products can bring in $23 billion annually and that it will grow by an average of 4% per year over the coming five years.
Novartis announced the proposed spinoff earlier this summer claiming that it was part of its overall plan to focus of higher margin medicines. At the time, Vas Narasimhan M.D., Chief Executive Officer of Novartis, said: "As we progress towards the spinoff, we are confident in the potential of Novartis and Alcon as separate companies to increase shareholder value. The transaction is expected to support our transformation to become a more focused innovative medicines company. For Alcon, it means more strategic focus and flexibility to pursue compelling growth opportunities in eye care devices, where it has the strongest portfolio and unmatched ability to serve patients worldwide."
Novartis bought Alcon from Nestlé for $50 billion in a number of stages in a deal that closed in 2010. The eye drugs part of the business was transferred to Novartis' main pharmaceuticals division but the remaining sections have struggled over the years.
More recently, Industrial Info reported on plans by Novartis to cut 2,550 jobs in Switzerland and the U.K. as the company continues its shift to higher-margin drugs. The decision will hit its home country hardest, with up to 1,500 jobs to be shed across four production plants at Basel, Stein, Locarno and Schweizerhalle. The company currently employs 13,000 people across Switzerland. In the U.K. the company will shut its Grimsby pill production plant with the loss of up to 400 jobs. For additional information, see October 8, 2018, article - Novartis Axing 2,550 Jobs in Switzerland and the U.K..
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
