Novartis CEO pledges not to sell Sandoz generic unit

ZURICH (Reuters) – Novartis (NOVN.S) General Manager Vas Narasimhan pledges in an interview published on Saturday not to sell the Swiss generics unit Sandoz following an overhaul that has sparked rumors that he is preparing to sell his business .

"No, we will not sell Sandoz," Narasimhan told Sueddeutsche Zeitung. "We will make Sandoz autonomous within Novartis, so it's more competitive. Our plan is to focus Sandoz and improve it in the long run. "

Novartis is reorganizing Sandoz, a process that Narasimhan has previously announced, which is expected to last about a year and a half. He has already sold a US generic drug and dermatology badet company under extreme price pressure and suggested that other disposals could take place.

These changes, as well as the departure of Sandoz's former CEO in March, led some badysts to predict that Narasimhan could eventually come out of the credits.

Sandoz, which generated a turnover of nearly $ 10 billion last year, revised up its annual sales target on July 18, suggesting the possibility of a growth in revenue. 'business lower than a figure, up from a prediction of' globally online 'with 2018.

In the first half of 2018, Sandoz's activities with biosimilar copies of brand blockbusters in Europe offset a US activity that remains under price pressure.

Narasimhan also announced plans to retain the Sandoz and Hexal brands in Germany. "There will be no change here," he told the newspaper.