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news.Aurobindo Pharma USA has agreed to acquire selected portions of Sandoz US portfolio from Novartis for $900m of cash and $100m of potential earn-outs.
Image: Novartis executive committee member and Sandoz CEO Richard Francis. Photo: courtesy of Novartis AG.
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Under the agreement, Aurobindo will purchase Sandoz US dermatology business and generic US oral solids portfolio.
As part of the deal, Aurobindo will acquire manufacturing facilities in Wilson of North Carolina, in addition to Hicksville and Melville of New York.
The divested business had net sales of $600m in the first half of 2018.
The divestment is part of Sandoz’s strategy to focus on complex generics, value-added medicines and biosimilars to attain sustainable and profitable growth in the US.
Novartis executive committee member and Sandoz CEO Richard Francis said: “Sharpening our portfolio focus in the US allows us to devote more time and resources toward our strategy of bringing complex generics, value-added medicines and biosimilars to patients in the US, creating higher value and opening up access to important medicines where alternatives are truly needed.”
Once the deal concludes, around 750 employees from the acquired facilities, as well as field representatives from the PharmaDerm branded dermatology business are expected to be shifted to Aurobindo.
Sandoz will focus more on clinical development, business development and investment efforts on these specialities.
Subject to customary closing conditions, the deal is expected to close in the course of 2019.
After the completion of transaction, Sandoz US portfolio will include biosimilars, value-added medicines and complex generics such as injectables, respiratory and ophthalmics.
Sandoz will focus more on clinical development, business development and investment efforts on these specialities.
Sandoz president Carol Lynch and Sandoz North America head Carol Lynch said: “We recognize that the transfer of ownership for a business of this size is a complex process, and we are aware that it may create some uncertainties for our associates in the US. It is thus a priority for us to make the transition as clear and quick as possible.”
Based in Basel of Switzerland, Novartis is healthcare solutions provider, which markets its products in around 155 countries across the globe.
