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Novartis sells key Sandoz US portfolios to Aurobindo for $1bn

Published on 06/09/18 at 11:38am

Novartis has revealed it is to sell the dermatology and generic US oral solids portfolios of its generics arm Sandoz to Indian firm Aurobindo Pharma for $1 billion, in a move the company says will enable it to better achieve “sustainable and profitable growth in the US over the long-term”.

The total value of the deal will be made up by $900 million in cash payments and a further $100 million in performance-based milestone payments. The agreement means Aurobindo receives the rights to around 300 products in addition to ongoing development projects, including Sandoz’s US generic and branded dermatology businesses and dermatology development centre.

Aurobindo will also take ownership of manufacturing sites in North Carolina and New York as part of the deal, which will see around 750 employees transfer to the company.

“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,” explained Richard Francis, CEO of Sandoz and Member of the Novartis Executive Committee. “Through this transaction, we are refocusing our business but also striving to ensure continuity of supply of important long-used generic medicines for patients and customers in the US.”

Novartis added that Sandoz US’ remaining portfolio will continue to play a substantial role in its overall strategy with biosimilars, value-added medicines and complex generics.

The deal is forecast to close sometime in 2019.

Matt Fellows

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