Novartis Considers Sale of Ophthalmology and Respiratory Divisions to Focus on Core Therapeutics

Intelligent Finance APP learned from informed sources that Novartis (NVS.US) is considering selling non-core assets to raise funds for investment in cutting-edge drugs. According to informed sources, this Swiss pharmaceutical giant is at an early stage of considering the sale of its ophthalmology and respiratory departments, and some private equity firms have already started studying these businesses. They stated that the valuation of the ophthalmology business is approximately $5 billion.

Under the leadership of CEO Vas Narasimhan, Novartis has been following peers such as GSK and Johnson & Johnson (JNJ.US) in seeking to divest from consumer or generic drug businesses to focus on innovative drugs that enhance profitability. In August this year, the company announced the spin-off of its generics subsidiary, Sandoz.

Informed sources said that the sale of ophthalmology and respiratory businesses may begin after the completion of Sandoz's spin-off in 2023. Deliberations are still ongoing, and it is uncertain whether any asset sales will occur. Compared with the five core therapeutic areas of cardiology, immunology, neuroscience, solid tumors, and hematology, the company has fewer experimental drug reserves in the respiratory and ophthalmology fields.