OR WAIT null SECS
Novartis will sell selected portions of its Sandoz United States portfolio to Aurobindo Pharma USA for $900 million in cash, plus $100 million in potential earn-outs.
On Sept. 6, 2018, Novartis announced it has agreed to sell selected portions of its Sandoz United States portfolio, specifically the Sandoz US dermatology business and generic US oral solids portfolio, to generic pharmaceutical company Aurobindo Pharma USA, for $900 million in cash plus $100 million in potential earn-outs.
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 center. As part of the transaction, Aurobindo will acquire the manufacturing facilities in Wilson, NC, as well as Hicksville and Melville, NY. Novartis reports that the business had net sales of $600 million in the first half of 2018.
As part of the agreement, approximately 750 employees in Hicksville, Melville, Wilson and Princeton, NJ, as well as the field representatives for the PharmaDerm branded dermatology business, are expected to transfer to Aurobindo upon closing. According to Novartis, this transaction supports Sandoz’s strategy of focusing on complex generics, value-added medicines, and biosimilars to achieve sustainable and profitable growth in the US over the long-term.