(Writes through with details from GSK)
ZURICH, Feb 11 (Reuters) - Swiss drugmaker Novartis'
generics division is buying a GlaxoSmithKline
antibiotics business that includes the brands Zinnat, Zinacef
and Fortum for up to $500 million, the drugmakers said on
Thursday.
Novartis' Sandoz unit will pay GSK $350 million for the
cephalosporin antibiotics business at the closing of the deal,
which is expected in the second half of this year, plus a
further $150 million upon hitting set milestones.
Britain's GSK is splitting itself into two companies - one
focusing on over-the-counter products and the other on
prescription drugs and vaccines, seeking a leaner structure as
it invests in newer medicines.
The cephalosporin class of antibiotics is widely used to
treat various bacterial infections. The three brands that are
part of Thursday's deal had combined sales of roughly $140
million in "relevant" markets last year and are now out of
patent protection, GSK said. (https://bit.ly/3aXoa8O
]
Under the deal, Sandoz will be able to sell the brands in
all markets except Australia, China, Egypt, Germany, India,
Japan, Pakistan, and the United States, GSK said.
Other GSK antibiotic brands are not part of the sale to
Sandoz, according the British company, which said it would also
close its cephalosporins manufacturing operations once it has
finished transferring production to Sandoz, expected in 2025.
Although GSK did not announce any job cuts related to the
deal, it said all 170 roles in the Zinnat supply chain would be
affected, adding that it would provide support to the employees.
It did not provide further details.
(Reporting by Michael Shields in Zurich, and Pushkala Aripaka
and Muvija M in Bengaluru; Editing by John Revill and Pravin
Char)
Glaxosmithkline (GSK)