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The Swiss drugmaker, Novartis AG, said in a statement to the press that it would sell the dermatology and generic US oral solids portfolios of Sandoz US to Aurobindo Pharma Ltd for $900 million.
Novartis added that the deal also includes about 300 products and additional development projects of Sandoz and an additional $100 million in performance-based payments. The more than 130-year-old Sandoz unit was struggling by price pressure in the United States, making the Novartis having to sell the Sandoz unit.
Richard Francis, Sandoz chief executive said, “Through this transaction, we are refocusing our business but also striving to ensure continuity of supply of important long-used generic medicines for patients and customers in the US.”
Novartis also said that as part of the transaction, Aurobindo Pharma USA Inc, a unit of the Hyderabad, India-based company, will acquire the plants in Wilson, North Carolina, as well as Hicksville and Melville, New York.
N. Govindarajan, Managing Director of Aurobindo Pharma said, “Overall the transaction will position Aurobindo as the 2nd largest dermatology player and the 2nd largest generics company in the U.S. by prescriptions.”
