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Aurobindo to buy Sandoz's dermatology, oral solids biz

06:20 PM Sep 07, 2018 | Team Udayavani |

Hyderabad: Pharma major Novartis on Thursday announced itagreed 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 USD 900 million of cash plus USD 0.1 billion of potential earn-outs.

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According to a press release issued by the company, 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 centre.

“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 USD 0.6 billion in H1, 2018,” it said.

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, Novartis said.

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Aurobindo Pharma Managing Director, N Govindarajan, in a separate press release said the acquisition is in line with the company’s strategy to grow and diversify business in the US.

“Acquiring these businesses from Sandoz will allow us to further expand our product offering and to become a leading player in the generic dermatology market,” he added.

Overall the transaction will position Aurobindo as the 2nd largest dermatology player and the 2nd largest generics company in the US by prescriptions, he said.

“We expect a seamless integration of the acquired businesses with the rest of the Aurobindo group given the success we have achieved in our acquisitions to date,” he added.

“As we have done in some of our previous acquisitions, we will be focused on leveraging our group’s market leading vertically integrated and highly efficient manufacturing base to enhance the market position and medium-term profitability of the businesses we are acquiring,” Govindarajan said.

The transaction is expected to close in the course of 2019 following the completion of customary closing conditions, including US Federal Trade Commission clearance, a press release from Aurobindo said.

Aurobindo shares are trading at Rs 735.80 apiece, up 5.70 per cent over previous close on BSE at 1315 hrs.

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