Novartis’ Sandoz to acquire Aspen’s Japanese pharma business
Sandoz, the generic drug business of Novartis has agreed to acquire the Japanese business of Aspen Global Incorporated (AGI), a fully owned subsidiary of Aspen Pharmacare in a deal valued up to €400 million, as per the latest pharma acquisition news.
The acquisition includes shares in Aspen Japan and associated assets held by the South Africa-based Aspen Global.
As per the terms of the deal, Sandoz at the time of closing will pay €300 million as initial cash consideration. The Novartis unit will also pay a deferred consideration of up to €100 million based on fulfilling certain conditions after closing.
The acquisition is expected to help Sandoz grow its footprint in the third-largest generics marketplace in the world. Furthermore, it will complement the Sandoz broad portfolio and also pipeline of hospital generic and biosimilar products courtesy of a dedicated sales, marketing, and medical organization.
Richard Saynor – CEO of Sandoz said: “The acquisition of Aspen’s Japanese operations would significantly strengthen our position in this country, a stable but growing generics market. We are committed to helping address patient and customer needs in the market as we aspire to become the world’s leading and most valued generics company.”
Aspen’s Japanese portfolio includes off-patent medicines focused on anesthetics and specialty brands. The portfolio has around 20 products with anesthetics drugs like Xylocaine, specialty brands like Imuran and local brands.
The full-year sales of the Japanese drugs portfolio of Aspen for the fiscal year ending in 2019 were €130 million.
Sandoz has also signed a five-year manufacturing and supply agreement, with an option of an additional two-year extension) with Aspen Global Incorporated. This agreement, which is for the supply of active pharmaceutical ingredients, semi-finished and finished goods associated with the portfolio of the sold brands, will come into effect after the closing of the deal.
The deal, which is based on the meeting of certain preceding customary conditions, is likely to be wrapped up in the first half of next year.