Novartis Leans Towards Spinoff of $25 Billion Generics Arm (1)

Novartis AG is leaning toward a spinoff of its generic-drug unit, as a challenging environment for leveraged buyouts makes a potential sale to private equity more difficult, people familiar with the matter said.

The Swiss pharmaceutical giant sees a separate listing of the $25 billion Sandoz business as increasingly likely, according to the people, who asked not to be identified because the information is private. Novartis continues to explore a variety of options for the business and hasn’t made a final decision, the people said.

Shares in Novartis fell as much as 1.7% in early trading in Zurich on Friday, ...