On June 29, Novartis announced it intends to seek shareholder approval of a 100 percent spinoff of Alcon. At Alcon, we would not have achieved this significant and exciting milestone without the continued support of our valued suppliers.
It remains business as usual for the time being.
Alcon and Novartis will reach out to all suppliers to discuss a game plan for contract transition.
These plans are in the beginning stages and will take a number of months to finalize.
The benefits of these changes
These changes have many benefits for you, including:
A more focused and more flexible company that keeps meeting marketplace needs.
Expanding our innovation pipeline to become the leading investor in eye care R&D.
Growth that will require strong partnerships with our key suppliers.
We want to thank you for standing by us as we have worked on the company turnaround. We can’t wait to show you what the new Alcon can do.
We will continue to update this page with additional information as it becomes available. Or reach out to your Alcon Procurement contact to arrange a discussion to provide more specific information about how this may impact future business arrangements.
Q: How will this announcement affect my third-party supplier / agency contract with Alcon? A: In the immediate term, it’s business as usual. Alcon and Novartis will be reaching out to all suppliers providing goods and services to Alcon to establish dialogue and a contract transition strategy (game plan) with the appropriate supplier contacts. The goal is to either assign or duplicate the current agreement / provisions with pricing and delivery remaining unchanged.
Q: My contract is going to expire prior to Q1 2019, what does this mean for me? A: In the immediate term, it’s business as usual. Alcon will be in a rapid evaluation mode, looking at the business needs and requirements and sourcing accordingly but in short, if you have been a valuable contributor to our successful business turn in the past two years, you are a valuable partner that we will be looking to continue beneficial business in the future. We will be a standalone business, carefully monitoring costs and future opportunities, and wanting partners who share our vision.
As part of the separation, there may be a need to transition your current agreement with Novartis to a standalone Alcon specific agreement. We have made a conscious decision to minimize the use of transition service agreements unless deemed business critical and necessary.
Q: What happens for current tenders, upcoming projects or contract renewals? A: It will be business as usual for the time being. Alcon business leaders, together with Procurement, will be reviewing all services – including those in current tenders, for appropriateness in the future Medical Device business. As part of the separation, there may be a need to transition your current agreement with Novartis to a standalone Alcon specific agreement. We have made a conscious decision to minimize the use of transition service agreements unless deemed business critical and necessary.
Any contract renewals or changes will be handled directly with Alcon for Alcon services. Alcon Procurement can help facilitate answers so it will be important to open communication early.
For Novartis, it is business as usual and they will follow the same process as they currently do. If necessary, changes to ongoing tenders, projects and contracts will be discussed directly with Novartis Procurement.
Q: Who will be my Novartis/ Alcon contacts after Closing? And will I still send my invoices to the same place? A: For Alcon and the time being, we ask that you reach out to your usual Procurement contact. At the appropriate time, we will meet with you to provide further instructions. For Novartis, your contract with a Novartis legal entity after the closing of the transaction will be communicated as the transaction nears completion. Your Novartis contact and current invoicing contacts / process will remain as they are today.
Q: Where do I send my invoices? A: Continue to follow your current process until further notice.