Sandoz has successfully completed its separation from Novartis after extensive preparations lasting over a year. However, the initial valuation on its debut on the SIX Swiss Exchange fell short of some analysts’ expectations. The company’s market value at launch was 10.3 billion Swiss francs ($11.2 billion), Reuters reported. Analysts had previously projected valuations ranging from $11 billion to $26 billion for the newly independent entity.
This spinoff occurred against the backdrop of a global decline in stock indices in recent weeks.
Sandoz emerges as a dominant player in the generic and biosimilar pharmaceutical space. The company anticipates steady growth in the industry over the next decade due to underlying demand, as stated in a press release.
In August 2022, Novartis initially announced its plans to split the company. In preparation for the separation, Sandoz engaged in various agreements and capital investments.
In the previous month, Sandoz entered into a partnership to commercialize Samsung Bioepis’ biosimilar version of Johnson & Johnson’s popular immunology medication, Stelara. This agreement grants Sandoz commercialization rights for the product in the United States, Canada, Switzerland, the United Kingdom, and several European countries.
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CEO Richard Saynor highlighted that the company is eagerly anticipating five potential high-value product launches in the coming years. These include biosimilars to Biogen’s Tysabri and Regeneron and Bayer’s Eylea.
Sandoz has also committed $90 million to establish a new biosimilar technical development center in Ljubljana, Slovenia, where it plans to hire 200 employees. This facility will play a vital role in the company’s biosimilar development, covering end-to-end drug substance and drug product development.