-
Novartis has a catalyst-rich
pipeline with 10 potential blockbuster launches planned in the next
two years, and 20 additional potential blockbusters on the
horizon
-
Spin-off allows shareholders to
benefit from a standalone Alcon and a Novartis with capital and management attention fully focused on
medicines
-
Novartis retains a leading
ophthalmology pharmaceuticals business and attractive
pipeline
-
Novartis plans to pay
a strong and growing annual dividend, from the CHF 2.85 per
share paid in 2019, with no adjustment for the Alcon
spin-off
-
Share buyback of up to USD 5
billion announced in June 2018 expected to be completed in
2019
Basel, April 9, 2019 -
Novartis today completed the spin-off of the Alcon eye care devices
business through a dividend-in-kind distribution to holders of
Novartis shares and ADRs (American Depositary Receipts), with each
holder receiving 1 Alcon share for every 5 Novartis shares or ADRs
held on April 8, 2019, at the close of business.
The successful execution of the Alcon spin-off
allows Novartis to fully focus its capital allocation and
management attention on medicines. The spin-off gives Novartis a
financial profile closer to its pharmaceutical industry peers,
including higher group margins. As a focused medicines company,
Novartis is well-positioned for sustained top- and bottom-line
growth and plans to improve Innovative Medicines core margins into
the mid-30s by 2022.
Vas Narasimhan, CEO of Novartis, said: "This is an
incredibly exciting day for both Novartis and Alcon. Alcon has
demonstrated consistent growth, and is coming to market from a
position of strength. We wish them the very best for the future. At
Novartis, we continue to reimagine ourselves as a leading medicines
company powered by breakthrough medicines, data science and
advanced therapy platforms. We are well positioned for the future
and I am excited for our associates, our investors, and most
importantly for patients."
Novartis has an industry-leading, catalyst-rich
pipeline with 10 potential blockbuster launches expected in the
next two years and an additional 20 potential blockbusters on the
horizon. Of these potential blockbuster launches, four are planned
in 2019, including brolucizumab (RTH258). RTH258 is part of the
leading ophthalmology pharmaceuticals business retained by
Novartis, with 2018 sales of USD 4.6 billion and a pipeline of
potential novel treatments for presbyopia, dry eye and genetic
diseases.
Novartis reiterated its disciplined shareholder
focused approach to capital allocation, including its intention to
continue paying a strong and growing annual dividend up from the
CHF 2.85 per share paid in 2019, without adjustments for the Alcon
spin-off. Share buybacks will continue to be part of the mix to
create shareholder value, with USD 0.8 billion of an up to USD 5
billion commitment completed in 2018, and the remainder expected to
be completed by the end of 2019.
Shares in Alcon, Inc. will be listed and commence
trading today under the symbol "ALC" on the SIX Swiss Exchange
(SIX) from 09:00 CET and on the New York Stock Exchange (NYSE) from
09:30 EST. Shares of Novartis will continue to trade on the SIX
under the symbol "NOVN" and Novartis ADRs will continue to trade on
the NYSE under the symbol "NVS".
Novartis plans to provide more information on its
strategic priorities and prospects to investors and analysts at its
annual Meet Novartis Management event in Cambridge, Massachusetts,
on May 22-23, 2019.
Disclaimer
This press release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, that can generally be identified by words such as
"continues," "positioned," "plans," "by 2022," "pipeline,"
"potential," "launches," "planned," "in the next two years," "on
the horizon," "focused," "growing," "expected," "focus," "well
positioned," "for the future," "intention," "will," or similar
expressions, or by express or implied discussions regarding the
spin-off of Alcon; regarding the future performance of Novartis and
Alcon as separate businesses, or regarding any potential strategic
benefits, synergies or opportunities as a result of the spin-off;
or by discussions of strategy, plans, expectations or intentions.
You should not place undue reliance on these statements. Such
forward looking statements are based on our current beliefs and
expectations regarding future events, and are subject to
significant known and unknown risks and uncertainties. Should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those set forth in the forward looking statements.
There can be no guarantee that Novartis or Alcon as separate
businesses will be able to realize any of the potential strategic
benefits, synergies or opportunities as a result of the spin-off,
within any particular time frame, or at all. Neither can there be
any guarantee that shareholders of Novartis or Alcon will achieve
any particular level of shareholder returns. Nor can there be any
guarantee that Novartis or Alcon will be commercially successful in
the future, or achieve any particular credit rating or financial
results. In particular, our expectations could be affected by,
among other things: the potential that the strategic benefits,
synergies or opportunities expected from the spin-off may not be
realized or may take longer to realize than expected; global trends
toward health care cost containment, including government, payor
and general public pricing and reimbursement pressures and
requirements for increased pricing transparency; regulatory actions
or delays or government regulation generally; the inherent
uncertainties involved in predicting shareholder returns; a failure
to successfully separate Alcon from the Novartis Group subsequent
to the completion of the spin-off, or within the expected time
frame; potential adverse reactions to the spin-off by customers,
suppliers, strategic partners or key Alcon personnel and potential
difficulties in maintaining relationships with such persons; the
uncertainties inherent in the research and development of new
healthcare products, including clinical trial results and
additional analysis of existing clinical data; the ability of
Novartis or Alcon to obtain or maintain proprietary intellectual
property protection; safety, quality or manufacturing issues,
including withdrawal of products from the market; uncertainties
regarding actual or potential legal proceedings, including, among
others, actual or potential product liability litigation,
litigation and investigations regarding sales and marketing
practices, intellectual property disputes and government
investigations generally; uncertainties involved in the development
or adoption of potentially transformational technologies and
business models; general political and economic conditions,
including uncertainties regarding the effects of ongoing
instability in various parts of the world; uncertainties regarding
future global exchange rates; uncertainties regarding future demand
for our products or those of Alcon; and uncertainties regarding
potential significant breaches of data security or data privacy, or
disruptions of our information technology systems or those of
Alcon; and other risks and factors referred to in Novartis AG's
current Form 20-F on file with the US Securities and Exchange
Commission (SEC) or in the Form 20-F filed by Alcon with the SEC,
as amended from time to time, and the corresponding Swiss listing
prospectus. Novartis is providing the information in this press
release as of this date and does not undertake any obligation to
update any forward-looking statements as a result of new
information, future events or otherwise.
This press release is not an offer to sell, or a
solicitation of an offer to buy or sell, any securities of Novartis
or of Alcon, and may not be relied upon in connection with the
purchase or sale of any such security. Should you wish to invest in
Alcon, you should do so solely on the basis of information Alcon
has filed with the SEC or in the corresponding Swiss listing
prospectus, including the section "Risk Factors" included in the
Alcon Inc. Form 20-F registration statement and the Swiss listing
prospectus, respectively. The information filed with the SEC is
available on the SEC's website at www.sec.gov.
About Novartis
Novartis is reimagining medicine to improve and extend people's
lives. As a leading global medicines company, we use innovative
science and digital technologies to create transformative
treatments in areas of great medical need. In our quest to find new
medicines, we consistently rank among the world's top companies
investing in research and development. Novartis products reach more
than 750 million people globally and we are finding innovative ways
to expand access to our latest treatments. About 105 000 people of
more than 140 nationalities work at Novartis around the world. Find
out more at www.novartis.com.
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