Novartis shareholders voted in favor of the spinoff of the Swiss pharmaceutical giant’s generic-drugs arm, Sandoz, during an extraordinary general meeting held on Friday. An overwhelming 99.7% of the capital represented at the meeting backed this strategic move.
Richard Saynor, CEO of Sandoz, expressed his enthusiastic commitment to outpace the world’s largest biosimilars producer, U.S.-based pharmaceutical behemoth Pfizer. “It’s very much on the cards,” Saynor affirmed regarding his goal. Speaking at the meeting, he outlined his vision to fortify Sandoz’s position in the biosimilars market.
Sandoz, a leader in producing cost-effective versions of off-patent biologic drugs derived from engineered living cells, is set to bolster its development pipeline. Saynor declared, “When I joined in 2019, there were fewer than eight biologics in the pipeline. Today there’s 25. And that journey will continue. I’ll be happier when it’s over 30.”
Yet, the ambitions of the new entity extend beyond mere expansion. Saynor outlined plans for the introduction of no fewer than five additional biologic drugs in the long term. These strategic initiatives are poised to enhance the attractiveness of the newly independent company to investors as it prepares for its market debut slated for October 4.
The resounding endorsement of the spinoff by Novartis shareholders underscores their confidence in the trajectory of Sandoz. The spinoff is perceived as a pivotal step in strategically positioning both entities for growth and success in their respective domains.
Novartis, a global pharmaceutical powerhouse with a rich legacy of groundbreaking medical advancements, initiated the spinoff to allow Sandoz to pursue its distinct strategic objectives. The separation of Sandoz as an independent entity will provide it with the autonomy and focus needed to drive innovation and seize new opportunities in the competitive biosimilars market.
The spinoff is expected to usher in a new era of dynamism and innovation for Sandoz, enabling the company to leverage its expertise and resources more effectively in the rapidly evolving biopharmaceutical landscape.
As the countdown to the October 4 market debut accelerates, all eyes are on Sandoz and its ambitious agenda to reshape the biosimilars market. With a robust pipeline of 25 biosimilars and plans for the introduction of additional biologic drugs, Sandoz is poised to emerge as a formidable contender in the global pharmaceutical arena. The resounding approval of Novartis shareholders serves as a powerful endorsement of this strategic move and sets the stage for a new chapter of growth and leadership in the pharmaceutical industry.
Source: Reuters
