Novartis completes spin-off of Alcon eye care devices business

Novartis completed the spin-off of the Alcon eye care devices business through a dividend-in-kind distribution to holders of Novartis shares and American depositary receipts, it announced on Monday, with each holder receiving one Alcon share for every five Novartis shares or ADRs held on 8 April.

The Swiss pharmaceuticals business said the spin-off would allow its to fully focus its capital allocation and management attention on medicines, as it gave Novartis a financial profile closer to its pharmaceutical industry peers, including higher group margins.

As a focused medicines company, Novartis said it was “well-positioned” for sustained top and bottom line growth, with plans to improve core margins in ‘innovative medicines’ into the mid-30s by 2022.

“This is an incredibly exciting day for both Novartis and Alcon,” said Novartis chief executive officer Vas Narasimhan.

“Alcon has demonstrated consistent growth, and is coming to market from a position of strength. We wish them the very best for the future.”

Narasimhan said that Novartis was continuing to “reimagine” itself 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.”

Shares in Alcon were being listed and commencing trading on Tuesday under the symbol ‘ALC’ on the SIX Swiss Exchange from 0900 CET, and on the New York Stock Exchange from 0930 EST.