(RTTNews.com) - Swiss drug major Novartis (NVS) announced Thursday that it has agreed to sell selected portions of its Sandoz US portfolio, specifically the Sandoz US dermatology business and generic US oral solids portfolio, to Aurobindo Pharma USA Inc., for $0.9 billion of cash plus $0.1 billion of potential earn- outs. Novartis will focus Sandoz division in US on higher growth areas.
Novartis said the sale supports the Sandoz strategy of focusing on complex generics, value-added medicines and biosimilars to achieve sustainable and profitable growth in the US over the long-term.
The Sandoz US portfolios to be sold to Aurobindo include approximately 300 products, as well as additional development projects. The sale includes the Sandoz US generic and branded dermatology businesses as well as its dermatology development center. As part of the transaction, Aurobindo will acquire the manufacturing facilities in Wilson, North Carolina, as well as Hicksville and Melville, New York. The business had net sales of $0.6 billion in H1, 2018.
As part of the agreement, approximately 750 employees in Hicksville, Melville, Wilson and Princeton, New Jersey, as well as the field representatives for the PharmaDerm branded dermatology business, are expected to transfer to Aurobindo upon closing.
Following the transaction, the Sandoz US portfolio will continue to be substantial, and will include biosimilars, value-added medicines and complex generics such as injectables, espiratory and ophthalmics. Sandoz will continue to focus its clinical development, business development and investment efforts on these areas.
The transaction is expected to close in the course of 2019 following the completion of customary closing conditions.
Richard Francis, CEO Sandoz and Member of the Novartis Executive Committee, 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."
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