The end of 2023 brought the beginning of Sandoz Group AG as part of the Obermatt Swiss Pearls Index. Even though the pharmaceutical company has been operating for more than a century, Sandoz is a brand new stock on the Swiss market. Previously owned by Novartis, it has recently separated and is now traded as a standalone company.
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The Obermatt Swiss Pearls portfolio received a couple of shares of Sandoz due to the spinoff, but the decision to buy more was made after an in-depth analysis. Of all the eligible stocks not yet in the portfolio, Sandoz had the best Obermatt 360° View at 73. It has good analyst coverage with 12 analysts already covering the company and solid Growth and Sentiment ranks.
The spinoff enables Novartis to focus on innovative medicines, while Sandoz will continue producing its generic medications and biosimilars, which they are most known for and which are available at hospitals and pharmacies worldwide. This sector has a solid long term potential.
At this same time, Julius Bär had the lowest 360° View out of all the companies in the portfolio at 16, and has hence been sold and removed.
Points that helped shape this decision
Solid Obermatt Ranks: the best Obermatt 360° View out of all the eligible companies not yet added to the index ✔
A well-known name, recently added to the Swiss stock market ✔
Good analyst coverage and enough free float ✔