Novartis to Spin Off Sandoz to Form Generic Drug Leader (1)

Novartis AG plans to spin off its Sandoz unit, creating the largest European generic and biosimilar drug company by sales.

The Swiss company is the latest pharmaceutical giant to try to reshape its business with a plan to separate a unit that has been struggling to meet expectations. The move, announced Thursday, is a long-awaited answer for Novartis’s shareholders after the Basel-based group started a strategic review of Sandoz last October.

Novartis shares rose as much as 1.1% on Thursday in Zurich, where Sandoz will also be listed.

Although the unit accounts for nearly one-fifth of Novartis’ $52.9 billion ...