Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, February 23, 2018

Article Excerpt

NOVARTIS AG, $85.33, symbol NVS on New York, is a Swiss pharmaceutical company with annual revenues of $50 billion. The company was formed in 1996 from the merger of Sandoz and Ciba-Geigy. In the fourth quarter of 2017, Novartis’s revenue increased 4.8%, to $12.9 billion from $12.3 billion a year earlier. The company earned $2.82 billion, up 6.0% from $2.67 billion. Earnings per share rose 8.0%, to $1.21 from $1.12, on more shares outstanding. Novartis’ Sandoz generics business is now considering the sale of its American operations. Sandoz continues to face significant pricing pressures, which have held back its profit growth. That generic drugmaker had overall revenue of $10.1 billion for 2017. While roughly 33% of that revenue came from the U.S., those operations generated just 15% of Sandoz’s overall profit. Still, the U.S. generics business could sell for as much as $1.6 billion. Meanwhile, Novartis is also considering the sale, spinoff or initial public offering for its eye-care division, Alcon. That business contributed…