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(Alliance News) -Â Sandoz, a division of Novartis AG, has agreed to buy GlaxoSkithKline's cephalosporin antibiotics business for up to USD500 million.
The deal includes the global rights to the Zinnat, Zinacef and Fortum brands in more than 100 markets. It excludes the rights in the US, Australia and Germany, which have been previously sold by Glaxo, while the markets of India, Pakistan, Egypt, Japan and China will be retained by Glaxo.
Sandoz will pay USD350 million at closing, plus additional milestone payments of up to USD150 million. The deal is expected to close in the second half of 2021, and last year the three brands had combined sales of around USD140 million in the relevant markets.
"This important transaction will further position Sandoz as a global leader in antibiotics – truly essential medicines that are the backbone of modern healthcare systems," said Sandoz Chief Executive Richard Saynor.
"Cephalosporins are the largest antibiotic segment by global sales and acquiring this leading business, including the established global Zinnat brand, will complement our #1 position in generic penicillins, the other key segment. It will also set us up for additional synergies driven by an increased promotional footprint that will support growth of both the acquired brands and the current existing Sandoz portfolio."
Shares in Novartis were up 0.7% at CHF82.23 in Zurich on Thursday, while Glaxo shares were down 1.0% at 1,262.35 pence.
By Lucy Heming;Â lucyheming@alliancenews.com
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