Hyderabad: Aurobindo Pharma on Thursday said its US subsidiary has entered into an agreement to acquire commercial operations and three manufacturing facilities in the US from Sandoz Inc, USA, a Novartis Division, for USD 900 million.
According to a regulatory filing with stock exchanges, this business has been carved out by the management of Sandoz for sale and is consisting of dermatology and oral solids businesses.
The acquisition will add approximately 300 products including projects in development as well as commercial and manufacturing capabilities in the US, complementing and expanding the group's portfolio and pipeline.
"The portfolio being divested generated sales of USD 0.6 billion in HI 2018 for Sandoz. After expiration of certain in-licensed product contracts, and rationalisations of acquired products that will not negatively impact profitability (but before the impact of any potential FTC-led divestments) the portfolio is expected to generate over $0.9 billion in sales for the first 12 months after completion of the transaction for Aurobindo," it said.
Commenting on the transaction, Managing Director of Aurobindo, 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.
Overall the transaction will position Aurobindo as the second largest dermatology player and the second largest generics company in the US by prescriptions."
"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.
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," he 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 release said.
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