Sector News

Novartis says listing of Alcon eye care business expected on April 9

March 25, 2019
Life sciences

Shares in Alcon, the eye care business being spun-off by Novartis, are expected to start trading on April 9 on the Swiss market and the New York Stock Exchange, the Swiss pharmaceuticals company said on Friday.

“Alcon obtained approval for listing on SIX Swiss Exchange and New York Stock Exchange,” Novartis said in a statement, adding that Alcon would enter the SMI, Switzerland’s blue-chip stock index, on its first trading day.

Novartis said Alcon had secured debt financing of $3.5 billion, adding that Bank of America Merrill Lynch and UBS were advising Novartis on the transaction.

Under the distribution, each Novartis shareholder will receive one Alcon share for every five Novartis shares or American depositary receipts they hold at the close of business on April 8.

Alcon has said it plans to pay a dividend in 2020 and will focus on “bolt-on” acquisitions to help boost operating margins to the mid-20 percent range, from the high-teens now.

The business was bought from Nestle for $52 billion in 2011, as former Novartis Chairman Daniel Vasella sought to build the Swiss drug company into a European healthcare giant along the lines of U.S.-based Johnson & Johnson.

But Alcon became a trouble spot for Novartis, which had to make massive investments to reverse falling sales and losses.

Novartis Chief Executive Officer Vas Narasimhan decided to unload the business last year to focus on new drugs, not the surgical devices and contact lenses that Alcon makes.

By Riham Alkousaa and John Revill

Source: Reuters

Related News

June 2, 2020

New vaccine for Ebola among CHMP recommendations

Life sciences

Johnson and Johnson’s experimental two-stage vaccine for protection against Ebola virus disease is among eight medicines backed by the European Medicines Agency’s human medicines committee (CHMP) at its May meeting. […]

June 2, 2020

Lilly begins first clinical trial of antibody that targets SARS-CoV-2

Life sciences

Eli Lilly and Company is the first company to begin a clinical trial of a monoclonal antibody that targets SARS-CoV-2, the novel coronavirus that causes COVID-19. AbCellera, an antibody start-up in […]

May 28, 2020

Thermo Fisher continues global expansion push with CSL Behring biologics plant lease

Life sciences

Thermo Fisher Scientific has aggressively expanded its biologics manufacturing capacity in recent months, dumping millions into capital spending. Now, in another deal that will keep its supply chain growing, Thermo […]