Sandoz makes major entry into generic injectables field with acquisition of fast-growing Sabex Holdings Ltd. of Canada
Transaction continues Sandoz strategy based on strong organic growth and strategic acquisitions to access new geographic markets, therapeutic lines, formulations and production capabilities
Vienna. Sandoz, a Novartis company, today announced plans to acquire Sabex Holdings Ltd. in a USD 565 million cash transaction that will provide strong growth opportunities in injectable generics and new entry into the Canadian generics sector. The deal continues Sandoz strategy of building its global business through strong organic growth and strategic acquisitions that provide access to new geographic markets, therapeutic lines, formulations and production capabilities.
Headquartered in Boucherville, Quebec, Sabex is a privately held generics manufacturer with the leading position in generic injectables in Canada and the number six position in the Canadian generics sector overall. Sustaining recent growth rates in the high teens, the company achieved sales of nearly USD 90 million in fiscal 2003-2004. Sabex offers FDA manufacturing status and a broad range of critical care and ophthalmic medicines as well as suppositories and other products covering more than 80 molecules. Sabex is a portfolio company of RoundTable Healthcare Partners, which holds a majority of shares. "The acquisition of Sabex provides Sandoz with a leadership position in injectable generics in Canada and a platform to build a generic injectables business globally, particularly in the rapidly growing U.S. market," said Christian Seiwald, CEO of Sandoz. "The deal also gives Sandoz a new operational presence in Canada, the sixth largest market for generics in the world, where we see exciting opportunities to increase sales of our existing portfolio of solid dosage forms."
Between 2003 and 2010, peak sales of US branded injectable medicines losing patent protection is estimated at USD 14 billion compared with 2002 sales of more than USD 7 billion. Sales are highly concentrated in the top 20 brands, which make up 80% of the total branded sales going off patent.
Sabex brings Sandoz a seasoned management team with an average of more than 20 years experience in the pharmaceutical business and a highly successful track record of developing and launching generic products. With eight product approvals in fiscal 2003-2004 and 50 products under development, Sabex has a strong track record for new launches and a complementary pipeline with Sandoz compounds. In addition to the top ranked generic sales force in Canada, the acquisition brings Sandoz new capabilities in the development and production of small volume parenterals and finished dose formulations for injectables.
Other news from the department business & finance
Get the life science industry in your inbox
From now on, don't miss a thing: Our newsletter for biotechnology, pharma and life sciences brings you up to date every Tuesday and Thursday. The latest industry news, product highlights and innovations - compact and easy to understand in your inbox. Researched by us so you don't have to.
