Alcon spin-off confirmed by Novartis

Swiss pharma giant Novartis (NOVN: VX) today confirmed that certain important conditions precedent for the already announced 100% spin-off of the Alcon eye care business have been met, including receipt of certain necessary authorizations and rulings.

Completion of the transaction, by way of a distribution of a dividend in kind to Novartis shareholders and ADR (American Depositary Receipt) holders, is expected to be on April 9, 2019. In the distribution, each Novartis shareholder will receive 1 Alcon share for every 5 Novartis shares/ADRs they hold on April 8, 2019, close of business.

The Alcon business was bought from Nestle for $52 billion in 2011 under the stewardship of former chairman Daniel Vasella, but became a problem for Novartis, which had to make substantial investments to reverse falling sales and losses. Current chief executive Vas Narasimhan announced the company’s intention of off-load the business last year, having already moved its novel ophthalmic drugs into the main Novartis business.