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Novartis Leaning Toward Spinoff of $25 Billion Generics Arm

  • Sandoz listing increasingly likely as leveraged buyouts falter
  • Swiss pharma giant to make final decision by year-end
Novartis AG Full Year Results News Conference As Company Mulls IPO For Alcon Unit
Photographer: Michele Limina/Bloomberg
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Novartis AG is leaning toward a spinoff of its generic-drug unit, as a challenging environment for leveraged buyouts makes a potential sale to private equity more difficult, people familiar with the matter said. 

The Swiss pharmaceutical giant sees a separate listing of the $25 billion Sandoz business as increasingly likely, according to the people, who asked not to be identified because the information is private. Novartis continues to explore a variety of options for the business and hasn’t made a final decision, the people said.