Spinoff Complete: Alcon Now Stands on Its Own

Novartis has completed the spinoff of Alcon, an eye-care company it acquired nearly a decade ago for $12.9 billion. The Basel, Switzerland-based company first announced the planned separation in June of last year. The spinout was completed through a dividend-in-kind distribution to holders of Novartis shares and American Depositary Receipts (ADR), with each holder receiving 1 Alcon share for every 5 Novartis shares or ADRs held on April 8, 2019, at the close of business. The newly spun-out company is performing extremely well on the market. Alcon’s ADR (were trading at $57.81 leaving the company to be valued at nearly $29 billion. Novartis said the spin-off helps it have a financial profile closer to its pharmaceutical industry peers, including higher group margins. The firm said it is now well-positioned for sustained top- and bottom-line growth and plans to improve Innovative Medicines core margins into the mid-30s by 2022. “This is an incredibly exciting day for both Novartis and Alcon,” Vas Narasimhan, CEO of Novartis,said in a release. “Alcon has demonstrated consistent growth and is coming to market from a position of strength. We wish them the very best for the future At Novartis, we continue to reimagine ourselves 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, ...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news