Pharmaceutical giant Sandoz eyes new direction as it splits from parent firm Novartis

The pharmaceutical company Sandoz, the generic and biosimilar division of Swiss giant drugmaker Novartis, has officially split as a separate company and started trading on the SIX Swiss Exchange stock market.

The company's initial valuation was reported at CHF 10.3 billion ($11.2 billion), which was lower than some analysts' projections, with expected valuations ranging from $11 billion to $26 billion, according to Bloomberg.

Sandoz is positioned as a generic and biosimilar powerhouse, with the belief that the industry will see steady growth over the next decade due to underlying demand.

The separation of Sandoz from Novartis, which took place on October 4, will allow the generics leader to pursue its own growth strategy and challenge industry competitors like Viatris Inc. and Teva Pharmaceutical Industries Ltd.

Novartis CEO Vas Narasimhan has long sought to reshape the company into a more nimble organization focused exclusively on innovative prescription medicines.

Sandoz's strong presence in Europe, a less competitive generics market than the US, and its portfolio of biosimilars are expected to position it for premium trading compared to rivals.