, the $187 billion Swiss drugmaker said it will make expansion in the U.S. market a top priority as it seeks to boost its lacklustre growth. Chief Executive Vas Narasimhan wants to make the company a top five player in the world’s largest drug market, compared with its 10th spot ranking last year. He will also spin off its generic drug business next year and list it on the Swiss stock exchange.
The Sandoz spinoff could reveal some value. Assume the unit can deliver $2 billion of EBITDA in 2023 and is valued at the industry average of around 15 times, implying a $30 billion valuation. Strip that away from Novartis’ current enterprise value of $196 billion and the core drugs business is valued at around $167 billion. That’s less than 10 times its expected 2023 EBITDA, according to Refinitiv estimates, a 30% discount to peers.