Company: Sandoz AG, Basel, Basel-Stadt
Company Description: Sandoz is the global leader in generic and biosimilar medicines. Driven by its purpose to pioneer access for patients, more than 20,000 people work together to ensure 800 million patient treatments are provided annually, generating substantial global healthcare savings and an even larger social impact. Sandoz traces its heritage back to 1886. In 2023 it recorded sales of USD 9.6 billion.
Nomination Category: Corporate Communications, Investor Relations, & Public Relations Categories
Nomination Sub Category: Communications or PR Campaign of the Year - Corporate Communications
 Nomination Title: Europe's biggest listing in 2023
- If you are providing written answers to the questions for this category, you must answer this first question: Specify the date on which this campaign or program was launched:
The stock-market listing of Sandoz kicked off on August 25, 2022 with the announcement of the spin-off decision by the then parent company Novartis AG. The announcement was preceded by an almost one-year review process in which Novartis analyzed various options for Sandoz from October 26, 2021, ranging from a sale to a competitor to a sale to private equity to a spin-off of Sandoz as an independent company with its own stock exchange listing. The campaign covered the entire period from October 26, 2021 to the first listing day on October 4, 2023. The "hot phase" of the listing was from the beginning of June to the beginning of October 2023, and the publication of the company's first independent annual results on March 13, 2024 completed the campaign cycle.
- Which will you submit for this nomination, a video of up to five (5) minutes in length about the nominated campaign or program, OR written answers to the questions for this category? CHOOSE ONE:
Written answers to the questions
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the nominated video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video.
Executive Summary (in addition to the 5 min submission video):
In October 2023, Sandoz, Europe's largest supplier of generic and off-patent biotech medicines and one of the pharmaceutical industry's longest-established brands, returned to the Zurich Stock Exchange. The $11.2 billion spin-off of the long-established Swiss company from parent group Novartis was one of the most-watched European business stories of the year, making the company the biggest new entrant to the Swiss stock exchange since 2019 and the largest European listing of 2023. The successful launch of an independent Sandoz required a fully integrated, carefully coordinated communications campaign developed and executed by the Sandoz Global Corporate Affairs team. From in-depth CEO interviews in key financial publications and the launch of the redesigned Sandoz brand, to targeted social media campaigns and extensive internal communications, it is an impressive case study that demonstrates the importance of excellent communications for key business decisions.
- If you are providing written answers to the questions for this category, you must answer this second question: Describe the genesis of the nominated campaign or program: the reasons it was initiated, the challenges it was created to address, the problems it was developed to solve, etc. (up to 250 words):
Total 239 words used.
The Sandoz brand goes back to 1886, and the company has a proud record of medical innovation, including the world's first oral penicillin (1951) and the first biosimilar medicine (2006). Today, Sandoz is the global market leader in generics and off-patent biotech medicines, delivering about 800 million patient treatments each year. After the merger of the "old" Sandoz with Ciba-Geigy to form Novartis in 1996, the Sandoz name disappeared for 10 years until it was reactivated as a brand for the newly established Novartis generics division. In recent years, however, it has become increasingly clear that the synergies between Novartis and the Sandoz business were limited. To allow Sandoz to best focus on its own success, Novartis began reviewing options for the separation in October 2021. In August 2023, the decision was made to list Sandoz on the stock exchange by way of a spin-off.
One particular challenge was that the generics industry had not been a favorite of the capital markets recently. Although the sector accounts for around 80% of global drug production, the generics industry attracts significantly less media interest than the original drug manufacturers. The generics sector also is a highly competitive market with considerable margin pressures. Another challenge was that many early media reactions to the planned Sandoz spin-off were rather skeptical. Many commentators expressed concerns about the prospects of an independent Sandoz and the company's ability to win over investors, analysts and other stakeholders.
- If you are providing written answers to the questions for this category, you must answer this third question: Describe the development of the campaign or program: the planning process, the goal setting, the creative and media development, the scheduling, etc. (up to 250 words):
Total 249 words used.
The overarching goal of the campaign was to position the company as an attractive listing candidate that, as the global market leader in its industry, has more scope for a succesful development as an independent company. In this context, the Sandoz Corporate Affairs team developed five communication objectives to support a successful spin-off:
- Support the Sandoz "investment case" in financial target groups
- Raise awareness of Sandoz as a stand-alone company among core target audiences worldwide (media, investors, governments, payers and healthcare professionals).
- Strengthening the profile of CEO Richard Saynor as the face of the company
- Relaunch of the Sandoz corporate brand, emphasizing the purpose of Sandoz: Pioneering Access for Patients
- Create positive momentum around the spin-off with the target group of Sandoz employees and leaders.
The communication activities were divided into 2 core phases - the "long" campaign, which ran from October 2021 to August 2022 (announcement of the Sandoz spin), and an intensive "short" campaign from June to listing day on October 4, 2023. This was followed by the publication of its first independent annual report in March 2024.
In Phase 1, the focus was on internal communications to keep employees informed and engaged despite considerable uncertainty about the outcome of the strategic review Phase 2 saw intensive communication of the investment case which comprised highly targeted media, digital and capital market communications leading up to the spin-off. With the publication of its first annual report in March 2024, Sandoz demonstrated its ability to deliver on its promises.
- If you are providing written answers to the questions for this category, you must answer this fourth question: Outline the activities and concrete results of this campaign or program since the beginning of 2019. Even if your initiative started before 2022, limit your response to activities and results since the beginning of 2022 only (up to 250 words):
Total 250 words used.
Core activities
- In internal communications, the initial focus was on timely information and employee involvement. An engagement campaign to position the company’s employees as "founders of Sandoz" was created as a theme that carried through to the listing day celebrations.
- The Sandoz brand was relaunched, building on the long heritage of Sandoz and its strong brand equity.
- A series of editorial interviews by Sandoz CEO Richard Saynor with key international media outlets, including Reuters, Bloomberg, Frankfurter Allgemeine Zeitung and others, enabled the investment case and CEO vision for the future to be outlined and the Sandoz profile to be built (see appendix).
- Targeted media partnerships, digital follower campaigns as well as print and digital advertising supported the external positioning of the company.
Results
- Sandoz successfully listed in Zurich on October 4, 2023. With a valuation of CHF 10.3 billion (USD 11.2 billion), it was the largest European listing in 2023.
- By May 15, 2024, the Sandoz share price was up 33% over the closing price on listing day.
- The spin-off significantly increased Sandoz media awareness and generated 10,000 media reports with a potential total reach of 15 billion people between October 2021 and October 2023.
- Media sentiment in 2021 was skeptical-to-negative, but the team completely turned this around and achieved a positive-to-neutral sentiment of 97% by October 2023.
- Internal surveys confirmed: 92% and 88% of managers and employees respectively agreed they felt well informed, and 95% and 91% respectively were enthusiastic about shaping the future of Sandoz.
- You have the option to reference here any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
Total 80 words used.
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