Alcon Will Be Worth $20 Billion to $30 Billion After Spinoff, Novartis Chairman Says

July 6, 2018: By Jon Swedien

Novartis Chairman Joerg Reinhardt told a Swiss newspaper that Alcon would be worth $20 billion to $30 billion if spun off from the parent company in 2019, Reuters reported.

Novartis announced June 29 that it intends to spin off Alcon into a separately traded, standalone company in 2019. The move is subject to shareholder approval at a February 2019 meeting.

Asked if Alcon made Novartis money, Reinhardt said, “Tough to say, since Alcon had to be revamped multiple times.”

Reinhardt added, “But I would say, all things considered, we didn’t lose money on Alcon.”

Novartis purchased a 25 percent share of Alcon from Nestle in April 2008 and completed its purchase of the remaining Nestle shares in early 2011.

Spinning off Alcon would create a new Switzerland-based global company with more than 20 thousand employees. Alcon reported about $7 billion in sales in 2017. Fort Worth, Texas, would continue to be a key location for Alcon.

Novartis also announced that it will start a share buyback of up to $5 billion in 2019 with proceeds from the $13 billion sale of its stake in a consumer-health joint venture with GlaxoSmithKline.

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