Published On: Sun, Sep 9th, 2018

Aurobindo Pharma to buy Sandoz US’ dermatology and oral solids businesses

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Aurobindo Pharma has agreed to acquire the dermatology business and a portfolio of oral solid products along with commercial and manufacturing infrastructure from Sandoz US, a division of Novartis, in a deal worth about $1 billion.

In this regard, the Indian pharma company will pay Sandoz US an upfront amount of $900 million in cash and up to $100 million in potential earn-outs from the acquired products.

Aurobindo Pharma says that the acquisition aligns with its strategy to bolster and expand its global business and also to grow and improve its product portfolio offerings in important therapeutic areas.

The deal will give the Indian pharma company a dermatology franchise made up of a variety of generic and a line-up of branded products.

Aurobindo Pharma will also acquire a commercial infrastructure with a dermatology sales force in addition to a manufacturing facility with specialized capabilities in creams, lotions, topical solutions, ointments, and topical suspensions that are largely complementary to its present manufacturing footprint.

Aurobindo Pharma to acquire dermatology and oral solids businesses of Sandoz US

Aurobindo Pharma to acquire dermatology and oral solids businesses of Sandoz US. Photo courtesy of Stuart Miles/Freedigitalphotos.net.

The generic dermatology portfolio to be acquired from Sandoz US covers a various therapeutic areas such as topical antibiotics, gynaecological and dermatological antifungal agents, anti-itch, anti-acne agents, local anaesthetic analgesics and a dermatological chemotherapeutic agent.

On the other hand, the oral non-dermatological portfolio to be acquired covers a variety of therapeutic areas like anti-neoplastic agents, auto-immune disease and a range of hormonal agents and others.

Aurobindo Pharma expects the acquisition to improve its pipeline of Abbreviated New Drug Application (ANDA) filings as well.

N Govindarajan – Managing Director of Aurobindo Pharma said: “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 2nd largest dermatology player and the 2nd 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.”

The acquisition is likely to be wrapped up next year after satisfying customary closing conditions such as FTC approval and others.

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