India’s Aurobindo buys Sandoz US assets from Novartis
The transaction underpins Novartis's strategy of achieving sustainable and profitable growth in the US in the long term.
Keystone
Swiss pharmaceutical company Novartis announced the divestment of its dermatology and generic tablet portfolios of Sandoz US to India’s Aurobindo Pharma for a $900 million (CHF870 million) cash payment.
This content was published on
2 minutes
A possible performance-related payment of $100 million could be added to the purchase price, the Swiss AWP financial news agency reported.
The divested business generated sales of $600 million in the first half of 2018. It includes approximately 300 products and development projects.
A Novartis spokesman refused to comment on whether other parts of the Sandoz portfolio in the United States were still for sale.
750 employees affected
The production facilities in Wilson, North Carolina, as well as in Hicksville and Melville, New York, will also be transferred to Aurobindo.
In this context, approximately 750 employees and the sales force of the dermatology business PharmaDerm will be transferred to the Indian company upon completion of the transaction.
Novartis said the transaction is expected to close during 2019.
Focus on complex generics
Sandoz will focus instead on complex generics, value-added medicines and biosimilars.
The transaction underpins Novartis’s strategy of achieving sustainable and profitable growth in the US in the long term. “With this transaction, we are focusing our business,” Sandoz CEO Richard Francis was quoted as saying.
The Sandoz portfolio will remain “strong” even after the transaction, according to the company statement. It includes injectables, respiratory products and ophthalmics.
Popular Stories
More
Swiss Abroad
Heimatort, sweet Heimatort: the unique Swiss concept of home
As a Swiss Abroad, how do you feel about the emergence of more conservative family policies in some US states?
In recent years several US states have adopted more conservative policies on family issues, abortion and education. As a Swiss citizen living there, how do you view this development?
What factors should be taken into account when inheriting Swiss citizenship abroad?
Should there be a limit to the passing on of Swiss citizenship? Or is the current practice too strict and it should still be possible to register after the age of 25?
This content was published on
The value of frozen Russian assets in Switzerland currently stands at CHF 7.4 billion, the Swiss Confederation announced on Tuesday. This represents an increase of CHF 1.6 billion in one year. Additional assets have been identified, according to the State Secretariat for Economic Affairs.
This content was published on
The number of business start-ups in Switzerland accelerated in the first three months of the year, with entrepreneurs being particularly dynamic in Central Switzerland, Basel and Geneva.
Most Swiss authorities want to ban Nazi symbols in public
This content was published on
A majority of Swiss political parties, cantons and associations want to ban the use and distribution of Nazi symbols in public.
This content was published on
French and Swiss armoured and artillery units will train together to strengthen the defence capabilities of the Swiss army.
Harmful substances in particulate matter underestimated: Swiss research
This content was published on
Measurements significantly underestimate the amount of harmful substances in particulate matter, says an international research team under Swiss leadership.
Switzerland reopens its humanitarian office in Kabul
This content was published on
Switzerland opened its humanitarian office in Kabul in mid-March to provide targeted aid to the Afghan population in distress.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Novartis chief hints at job cuts in Switzerland
This content was published on
The president of pharmaceutical giant Novartis has announced job cuts in an interview with Swiss newspaper NZZ am Sonntag.
This content was published on
The expansion will take place at the company’s Stein site in Aargau. As a first step, Novartis plans to create 260 new jobs and says there is potential to raise that number to 450 by 2021. Last year the company announced plans to slash 500 jobs at its Basel headquarters, but said at the time…
Eye on the Multinationals: Your questions become our stories
This content was published on
Do you work for or would like to work for a multinational company? Are you concerned about the impact of multinational companies at home and abroad?
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.