(Alliance News) - Swiss pharmaceutical firm Novartis AG on Monday said its division Sandoz has completed the acquisition of UK-based drugmaker GlaxoSmithKline PLC's cephalosporin antibiotics business.
Sandoz paid USD350 million at closing, plus additional milestone payments will be made of up to USD150 million.
Through this transaction, Sandoz has acquired rights to three brands - Zinnat, Zinacef and Fortum - in more than 100 markets, further reinforcing its global position in antibiotics. In 2020, the three brands had combined sales of USD140 million.
The transaction excludes rights to some brands previously divested by GSK in the US, Australia and Germany. GSK will also retain full brand rights in China, India, Pakistan, and Egypt and to some brands in Japan.
"Antibiotics are the backbone of modern healthcare systems and a central pillar of our worldwide Sandoz patient offering," said Sandoz Chief Executive Richard Saynor.
"The successful and timely closing of this important transaction is further proof of our commitment at Sandoz to be a leading global supplier of these essential medicines," added Saynor.
Novartis said Sandoz intends in the longer term to manufacture Zinnat at sites in its own network, in Kundl, Austria. In May, Sandoz announced plans to invest more than EUR150 million in its uniquely vertically-integrated, European-based antibiotics network.
Novartis shares were trading 0.1% higher in Zurich on Monday at CHF76.55 each, while GSK stock was down 0.4% at 1,394.00 pence a share in London.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Glaxosmithkline (GSK)