NVS Novartis AG

   By Giulia Petroni 
 

Novartis's off-patent medicines division Sandoz set out its growth plans as a standalone company following the proposed spinoff, saying it is well positioned to continue delivering mid-single digit sales growth.

Ahead of its capital markets day on Thursday, Sandoz said it foresees mid-single digit net sales growth for the full year as well as for the 2024-28 period.

The core earnings before interest, taxes, depreciation and amortization margin is expected at 18%-19% in 2023 and at 24%-26% in the mid term. An initial decrease from a core Ebitda margin of 21.2% in 2022 is due to inflation and investments required to stand as a separate company.

Free cash flow is expected to more than double by 2028 from $800 million last year, Sandoz said. This would allow to pay a full-year dividend of 20%-30% of core net income in 2023 and 30%-40% in the mid term.

The proposed spinoff of Sandoz is expected to occur in the second half of the year. Completion is subject to conditions.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

June 08, 2023 01:48 ET (05:48 GMT)

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