Novartis news about the company’s spin-off of Alcon has NVS stock down on Tuesday.
Novartis (NYSE:NVS) announced on Tuesday that it has completed its spin-off of Alcon. This has the stock now trading on the New York Stock Exchange under the stock ticker of “ALC.” It is also trading under this ticker on the SIX Swiss Exchange. There is no change to the tickers for NVS stock on either exchange.
The Novartis news about the spin-off had the company completing the action through a dividend-in-kind distribution. This means that the Alcon (NYSE:ALC) spin-off saw investors in NVS stock gain shares of ALC stock. The rate was one share of ALC stock for each five shares of NVS stock held by an investor.
Novartis notes that the spin-off of Alcon has the company better aligning its portfolio with those of its peers in the pharmaceutical industry. This will allow to to focus its capital allocation and management attention on medicines.
“At Novartis, we continue to reimagine ourselves as a leading medicines company powered by breakthrough medicines, data science and advanced therapy platforms,” Vas Narasimhan, CEO of Novartis, said in a statement. “We are well positioned for the future and I am excited for our associates, our investors, and most importantly for patients.”
NVS stock was down 11% as of Tuesday morning, but is up nearly 13% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.