Sandoz to acquire EBEWE Pharma specialty generics business, improving access for patients worldwide to injectable cancer drugs

Definitive agreement to acquire EBEWE Pharma's specialty injectables business for EUR 925 million (USD 1.2 billion) in an all-cash transaction

25-May-2009 - Switzerland

Novartis has signed a definitive agreement to acquire the specialty generic injectables business of EBEWE Pharma, providing Sandoz - the Group's generic pharmaceuticals division - an opportunity to create a global platform for future growth while improving access for patients worldwide to many generic oncology medicines.

Under terms of the agreement, Novartis will acquire this business for EUR 925 million (USD 1.2 billion) in cash. Excluded from this transaction is EBEWE Pharma's separate injectable neurological products business. As part of Sandoz this portfolio of oncology medicines can be expanded thanks to Sandoz's broad global presence. Several of EBEWE Pharma's products - including paclitaxel, epirubicin, methotrexate, oxaliplatin, carboplatin, doxorubicin and gemcitabine - are essential components of standard-of-care guidelines for treating many types of cancers.

"The addition of EBEWE Pharma's leading portfolio of oncology medicines fits our strategy and improves our ability to help cancer patients around the world by providing easier access to therapies. These medicines will remain the backbone of multi-drug treatments in the fight against cancer, one of the world's leading causes of death," said Dr. Daniel Vasella, Chairman and CEO of Novartis. "EBEWE Pharma will further strengthen our pipeline with many planned near-term launches."

Novartis has signed definitive agreements with the shareholders of EBEWE Pharma to acquire its specialty generic injectables business for EUR 925 million (USD 1.2 billion) in cash, to be adjusted for any cash or debt assumed at closing. This transaction will be financed from the Group's existing cash resources and strong cash flow. Novartis will acquire the research, development and manufacturing assets of this business, including tangible assets including a production site in Austria, as well as intellectual property and related expertise. Excluded is EBEWE Pharma's separate, smaller neurological products business. This transaction, which requires customary regulatory approvals, is expected to be completed in 2009. No impact is expected on the Group's ratings by international credit rating agencies.

Other news from the department business & finance

Most read news

More news from our other portals

Fighting cancer: latest developments and advances