OR WAIT null SECS
The divestment will create the number two player in the global influenza vaccine industry.
CSL Limited and Novartis both announced Sunday that Novartis will divest its global vaccine business to CSL Limited, and this business will be combined with CSL’s subsidiary, bioCSL. The divestiture, which will cost CSL $275 million, will create the second biggest player in the vaccine industry, according to a CSL press release. Over the next 3-5 years, sales from this transaction are expected to reach $1 billion.
Integration costs are projected to be approximately $100 million and will accrue in fiscal year 2016. Synergies as a result of the divestiture are expected to reach $75 million by 2020. Although it is subject to regulatory approval, final settlement of the transaction is expected to occur in the second half of calendar year 2015.
Novartis divested its non-vaccine business to GlaxoSmithKline (GSK) on Apr. 22, 2014. "The influenza vaccines business will be reported together with the non-influenza business until such time as the non-influenza vaccines business is divested to GSK as part of the previously announced transaction," according to a Novartis statement. The company has also sold off its animal health division to Eli Lilly, who announced on Oct. 27, 2014 that they in turn will sell the veterinary assets in the US to French animal health company Virbac, subject to the closing of the acquisition of Novartis Animal Health by Lilly.
Novartis said these efforts to slim down its operations will allow the company to better focus its portfolio "on the leading businesses of innovative pharmaceuticals, eye care, and generics,” such as its Sandoz generics and Alcon units.