🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Alcon tops $28 billion market cap in decade's biggest Swiss stock deal

Published 09/04/2019, 09:14
© Reuters.  Alcon tops $28 billion market cap in decade's biggest Swiss stock deal
JNJ
-

By John Miller

ZURICH (Reuters) - Swiss eyecare company Alcon made its debut on the SIX Swiss Exchange on Tuesday with a market capitalisation of more than $25 billion after a shareholder spin-off from drugmaker Novartis, the Alpine nation's biggest stock deal in a decade.

Alcon shares traded at 57.80 Swiss francs at 0800 GMT after opening at 55 Swiss francs per share, reaching a market cap of some 28 billion Swiss francs (21.46 billion pounds).

Novartis shares, which closed on Tuesday at 95 francs, fell to 85.50 francs. Investors got one Alcon share for each five Novartis shares they held.

Alcon, a $7.1 billion-per-year group which began as a Fort Worth, Texas, pharmacy in 1945, suffered flagging sales and profit before Novartis swapped out management in 2016 to help arrest the decline. Geneva-based Alcon now aims to strengthen its rank as the biggest ophthalmic surgery device maker and No. 2 maker of contact lenses and solutions behind Johnson & Johnson (NYSE:JNJ).

"We are poised to achieve sustainable growth and create long-term shareholder value as a standalone company," Alcon Chief Executive David Endicott said.

Giving Alcon to shareholders helps cap Novartis's years-long retreat from being a broad healthcare company, as Chief Executive Vas Narasimhan focuses on prescription drugs and specialised, costly treatments like gene therapy.

"We continue to reimagine ourselves as a leading medicines company powered by breakthrough medicines, data science and advanced therapy platforms," Narasimhan said in a statement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.