Sandoz today published a supplement to its Listing Prospectus of August 18, 2023, ahead of an Extraordinary General Meeting (EGM) of Novartis shareholders.
- Click here [www.sandoz.com/sandoz-spin] to access the supplement to the Listing Prospectus and other related documents
- here (www.sandoz.com/prospectus) to access the Listing Prospectus, and
- here (General Meetings | novartis) to access the Novartis Shareholder Information Brochure.
Scheduled to take place on September 15, 2023, the EGM has been called after the Novartis Board of Directors endorsed the proposed Spin-off of Sandoz, the Generics and Biosimilars business of Novartis.
The supplement provides Sandoz H1 2023 combined and pro forma financial statements.
Sandoz net sales to third parties were USD 4.8 billion (+5%, +8% cc), with volume contributing 12 percentage points to growth, more than offsetting a negative impact of 4 percentage points from pricing. The sales increase was mainly driven by Europe, which benefited from strong volume growth driven by continued momentum from prior year launches, a strong cough and cold season and the Biosimilars business.
Core EBITDA was USD 1.0 billion (–3%, +6% cc) reflecting strong sales growth and improved product mix.
Guidance was confirmed for the current financial year 2023 and the mid-term (2024 to 2028). Sandoz expects mid-single digit net sales growth for 2023 as well as for the mid-term, with the core EBITDA margin anticipated to expand to 24 to 26% in the mid-term from 18-19% in 2023.
If Novartis shareholders approve the proposed distribution at the EGM, the Spin-off will be implemented through the distribution of a dividend-in-kind of Sandoz shares to Novartis shareholders, and of Sandoz ADRs (American Depositary Receipts) to Novartis ADR holders.
Novartis shareholders and Novartis ADR holders will receive:
- 1 Sandoz Share for every 5 Novartis Shares
- 1 Sandoz ADR for every 5 Novartis ADRs
The Spin-off is expected to be tax neutral for Swiss tax and US federal income tax purposes.
Source link: https://www.novartis.com/
