Novartis to spin off Alcon eye-care business

Novartis AG on Friday said it would spin off its Alcon eye-care unit, a business analysts said it could be valued at more than $ 20 billion, the latest move by the company's chief executive to reshape the Swiss drug giant. [19659002ThecompanysaidthatAlconspinningoffastand-alonebusinesstobepubliclytradedinSwitzerlandandtheUSwouldallowthedrugmakertobemorefocused(19659002)ThedecisionisthelatestbigstrategicmovebythenewChiefExecutiveVasantNarasimhanwhotookthehelmoftheBasel-basedcompanyNovartis

After the Alcon spinoff, Novartis will be entirely a prescription-medicine company, "which is where I think we need to be successful," Mr. Narasimhan said in an interview.

Novartis bought Alcon in two transactions starting 10 years ago for a total of more than $ 50 billion. Alcon had been a big disappointment –

"Alcon has returned to a position of strength and strength. Narasimhan, a Harvard-trained doctor and a McKinsey & Co. consultant

Mr. Alcon could not have a market capitalization, Alcon could not have a market capitalization, and it was based in Fort Worth, Texas, and generated $ 7 billion in 2017.

between $ 15 trillion and $ 23 trillion, depending on the multiple earnings.

Alcon's expected value is lower than what Novartis is paid for by the Swiss company Ophthalmology pharmaceuticals business after the spinoff.

When explaining his decision to spinoff Alcon, Mr. Narasimhan said it was a rapidly-evolving technological progress, and said that Novartis needed to concentrate its capital on digital technology to innovate.

Under Mr. Narasimhan, Novartis agreed in March GlaxoSmithKline PLC to the British company for $ 13 billion. Novartis also agreed in April to buy US-based gene therapy company AveXis for $ 8.7 billion.

The company also said Friday that it would buy back up to $ 5 billion worth of shares by the end of 2019. The buyback will be largely sponsored by GSK.

Novartis said Alcon Chief Executive Mike Ball will be chairman of the board of directors and will be chairman of the board of directors of the company. directors. Alcon Chief Operating Officer David Endicott will succeed Mr. Ball

Write to Brian Blackstone at [email protected]