Novartis is selling parts of its generics business Sandoz to Aurobindo in a deal worth at least $900 million.
The drug giant said it is shedding Sandoz’ US dermatology business - which includes around 300 products and development projects and generated sales of around $600,000 in the first six months of 2018 - as well as generic oral solids.
Sandoz’ dermatology development center and manufacturing facilities in Wilson, North Carolina, as well as Hicksville and Melville, New York, are also included in the sale.
The move supports Sandoz’ strategy of focusing on complex generics, value-added medicines and biosimilars, the firm noted.
“Sharpening our portfolio focus in the US allows us to devote more time and resources toward our strategy of bringing complex generics, value-added medicines and biosimilars to patients in the US, creating higher value and opening up access to important medicines where alternatives are truly needed," says Richard Francis, Sandoz’ chief executive and member of the Novartis Executive Committee.
"Through this transaction, we are refocusing our business but also striving to ensure continuity of supply of important long-used generic medicines for patients and customers in the US."
The deal is expected to close sometime next year, subject to completion of customary closing conditions.