We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novartis (NVS) Spins off Sandoz, Reiterates Annual Outlook
Read MoreHide Full Article
Novartis (NVS - Free Report) completed the spin-off of its generic and biosimilar unit, Sandoz, following which Sandoz became an independent company.
The separation was conducted through a dividend-in-kind distribution to holders of Novartis and American Depositary Receipts (ADRs), with each holder receiving one Sandoz share for every five Novartis shares or one Sandoz ADR for every five Novartis ADRs, held at the close of business on Oct 3, 2023.
Novartis announced in 2022 that it planned to spin off Sandoz into a new publicly traded standalone company following a strategic review.
Shares of Sandoz are listed and have commenced trading from Oct 4 under the symbol “SDZ” on the SIX Swiss Exchange and Sandoz ADRs will be quoted and traded on OTCQX in the over-the-counter market under the symbol "SDZNY" in the United States.
With the spin-off, Novartis will focus on four core therapeutic areas: Cardiovascular, Renal and Metabolic, Immunology, Neuroscience and Oncology. The company has a deep pipeline as well and priority will be given to the United States, China, Germany and Japan markets.
The company has prioritized three next-generation platforms (Cell & Gene Therapy, Radioligand Therapy and xRNA) in addition to two established technology platforms (Chemistry and Biotherapeutics) for continued investment in new R&D capabilities and manufacturing scale.
Concurrently, Novartis reiterated its annual outlook. Sales are expected to grow in high-single digit and core operating income is expected to grow in low-double digit to mid-teens.
Novartis will continue to execute the $15 billion buyback program announced in July 2023, which is currently ongoing. The company paid a dividend of CHF 3.20 per share in 2023. It intends to increase its annual dividend going forward without re-basing it after the Sandoz spin-off.
Shares of Novartis have risen 9.6% year to date compared with the industry’s 2.6% growth.
Image Source: Zacks Investment Research
NVS is also streamlining its pharma business. It recently divested its “front of eye” ophthalmology assets to Bausch + Lomb (BLCO - Free Report) for $2.5 billion.
The deal includes Xiidra, a treatment for the signs and symptoms of dry eye disease and investigational medicine SAF312 (libvatrep), in development as a first-in-class therapy for chronic ocular surface pain, as well as the AcuStream delivery device in dry eye indications and OJL332 in pre-clinical development.
In view of the same, BLCO recently launched an offering of $1.4 billion in aggregate principal amount of new senior secured notes due 2028 to finance the acquisition of Xiidra.
Strong performance of key drugs, a deep pipeline and a streamlined focus should help NVS maintain momentum amid competition.
Novartis earlier acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition added two late-stage candidates, atrasentan and zigakibart for the treatment of IgA nephropathy to NVS’ pipeline.
Zacks Rank and Stocks to Consider
Novartis currently has a Zacks Rank #3 (Hold).
Some well-placed stocks in the industry are Eton Pharmaceuticals (ETON - Free Report) and Dynavax Technologies (DVAX - Free Report) . Eton currently sports a Zacks Rank #1 (Strong Buy) and Dynavax carries a Rank #2 (Buy).
Loss estimates for Eton for 2023 have narrowed to 10 cents from 31 cents in the past 60 days, while earnings estimates for 2024 are pegged at 26 cents per share.
Loss estimates for Dynavax for 2023 have narrowed to 23 cents from 56 cents in the past 90 days, while earnings estimates for 2024 are pinned at 3 cents per share.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Novartis (NVS) Spins off Sandoz, Reiterates Annual Outlook
Novartis (NVS - Free Report) completed the spin-off of its generic and biosimilar unit, Sandoz, following which Sandoz became an independent company.
The separation was conducted through a dividend-in-kind distribution to holders of Novartis and American Depositary Receipts (ADRs), with each holder receiving one Sandoz share for every five Novartis shares or one Sandoz ADR for every five Novartis ADRs, held at the close of business on Oct 3, 2023.
Novartis announced in 2022 that it planned to spin off Sandoz into a new publicly traded standalone company following a strategic review.
Shares of Sandoz are listed and have commenced trading from Oct 4 under the symbol “SDZ” on the SIX Swiss Exchange and Sandoz ADRs will be quoted and traded on OTCQX in the over-the-counter market under the symbol "SDZNY" in the United States.
With the spin-off, Novartis will focus on four core therapeutic areas: Cardiovascular, Renal and Metabolic, Immunology, Neuroscience and Oncology. The company has a deep pipeline as well and priority will be given to the United States, China, Germany and Japan markets.
The company has prioritized three next-generation platforms (Cell & Gene Therapy, Radioligand Therapy and xRNA) in addition to two established technology platforms (Chemistry and Biotherapeutics) for continued investment in new R&D capabilities and manufacturing scale.
Novartis AG Price, Consensus and EPS Surprise
Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote
Concurrently, Novartis reiterated its annual outlook. Sales are expected to grow in high-single digit and core operating income is expected to grow in low-double digit to mid-teens.
Novartis will continue to execute the $15 billion buyback program announced in July 2023, which is currently ongoing. The company paid a dividend of CHF 3.20 per share in 2023. It intends to increase its annual dividend going forward without re-basing it after the Sandoz spin-off.
Shares of Novartis have risen 9.6% year to date compared with the industry’s 2.6% growth.
Image Source: Zacks Investment Research
NVS is also streamlining its pharma business. It recently divested its “front of eye” ophthalmology assets to Bausch + Lomb (BLCO - Free Report) for $2.5 billion.
The deal includes Xiidra, a treatment for the signs and symptoms of dry eye disease and investigational medicine SAF312 (libvatrep), in development as a first-in-class therapy for chronic ocular surface pain, as well as the AcuStream delivery device in dry eye indications and OJL332 in pre-clinical development.
In view of the same, BLCO recently launched an offering of $1.4 billion in aggregate principal amount of new senior secured notes due 2028 to finance the acquisition of Xiidra.
Strong performance of key drugs, a deep pipeline and a streamlined focus should help NVS maintain momentum amid competition.
Novartis earlier acquired Chinook Therapeutics for $3.5 billion to strengthen its renal pipeline. The acquisition added two late-stage candidates, atrasentan and zigakibart for the treatment of IgA nephropathy to NVS’ pipeline.
Zacks Rank and Stocks to Consider
Novartis currently has a Zacks Rank #3 (Hold).
Some well-placed stocks in the industry are Eton Pharmaceuticals (ETON - Free Report) and Dynavax Technologies (DVAX - Free Report) . Eton currently sports a Zacks Rank #1 (Strong Buy) and Dynavax carries a Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss estimates for Eton for 2023 have narrowed to 10 cents from 31 cents in the past 60 days, while earnings estimates for 2024 are pegged at 26 cents per share.
Loss estimates for Dynavax for 2023 have narrowed to 23 cents from 56 cents in the past 90 days, while earnings estimates for 2024 are pinned at 3 cents per share.