Hyderabad: Pharma major Aurobindo on Thursday announced that it had agreed to buy selected portions of Sandoz US portfolio, specifically the Sandoz US dermatology business and generic US oral solids portfolio, for $900 million of cash plus $0.1 billion of potential earn-outs.
Aurobindo buys Sandoz’s generic biz for USD 900 mn
Aurobindo Pharma Managing Director, N Govindarajan, said the acquisition is in line with the company's strategy to grow and diversify business in the US. "Acquiring these businesses from Sandoz will allow us to further expand our product offering and to become a leading player in the generic dermatology market," he added.
Overall the transaction will position Aurobindo as the 2nd largest dermatology player and the 2nd largest generics company in the US by prescriptions, he said. "We expect a seamless integration of the acquired businesses with the rest of the Aurobindo group given the success we have achieved in our acquisitions to date," he added.
"As we have done in some of our previous acquisitions, we will be focused on leveraging our group's market leading vertically integrated and highly efficient manufacturing base to enhance the market position and medium-term profitability of the businesses we are acquiring," Govindarajan said.
The transaction is expected to close in the course of 2019 following the completion of customary closing conditions, including US Federal Trade Commission clearance. The Sandoz US portfolios to be sold to Aurobindo include approximately 300 products, as well as additional development projects. The sale includes the Sandoz US generic and branded dermatology businesses as well as its dermatology development centre.
As part of the transaction, Aurobindo will acquire the manufacturing facilities of Sandoz in Wilson, North Carolina, as well as Hicksville and Melville, New York.