Novartis to divest parts of Sandoz US portfolio to Aurobindo
6 September 2018 -

Novartis (SWX: NOVN) 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, (NSE: AUROPHARMA), the multinational company announced on Thursday.

The agreement involves Aurobindo paying a cash sum of USD0.9bn, plus USD0.1bn of potential earn-outs.

According to Novartis, the transaction supports the Sandoz strategy of focusing on complex generics, value-added medicines, and biosimilars to achieve sustainable and profitable growth in the US in the long-term.

The assets Aurobindo will acquire include approximately 300 products, as well as additional development projects. They include the Sandoz US generic and branded dermatology businesses, as well as its dermatology development centre. Aurobindo will also acquire manufacturing facilities in Wilson, North Carolina, as well as Hicksville and Melville, New York.

Terms of the agreement state that around 750 employees in Hicksville, Melville, Wilson and Princeton, New Jersey, and field representatives for the PharmaDerm branded dermatology business, will transfer to Aurobindo upon closing.

It is expected that the transaction will close in 2019 following the completion of customary closing conditions.