Sector News

Novartis preparing to sell U.S. generics pills business: Reuters

February 20, 2018
Life sciences

Novartis’ new CEO Vasant Narasimhan has indicated that the company might spin off its struggling U.S. generic pill business—and that is what it is preparing to do, sources are telling Reuters.

The news service today reported that Novartis is doing the legwork to auction off that piece of the Sandoz business, which might bring $1.6 billion from a competitor or private investors, Reuters said.

Outgoing CEO Joseph Jimenez and Narasimhan told analysts late last year that the Swiss drugmaker was looking at its options for the business in the face of rapid price erosion for generic pills in the U.S. They said a spinoff was one idea.

Narasimhan, in his first earnings call last month, said the company was looking at how to optimize the business in the face of ”significant pricing declines” and a poor climate that was unlikely to change anytime soon.

Executives have said they will concentrate U.S. efforts in complex generics and biosimilars.

By Eric Palmer

Source: Fierce Pharma

comments closed

Related News

November 27, 2022

DSM-Firmenich nutrition and beauty mega-merger edges closer as companies announce Exchange Offer

Life sciences

The new company will have four complementary businesses: Perfumery & Beauty, Food & Beverage/Taste & Beyond, Health, Nutrition & Care and Animal Nutrition & Health, each with strong market positions and expertise to address emerging consumer trends. The businesses will also prioritize environmental sustainability, health and well-being.

November 27, 2022

Merck agrees to acquire Imago for $1.35bn

Life sciences

Merck (MSD) has signed a definitive agreement for the acquisition of all outstanding shares of Imago BioSciences for a total equity price of nearly $1.35bn. A clinical-stage biopharmaceutical firm, Imago focuses on the development of new therapies to treat myeloproliferative neoplasms (MPNs) and other bone marrow ailments.

November 27, 2022

Novo Nordisk expands API capacity

Life sciences

Danish pharma Novo Nordisk has announced plans to invest 5.4 billion Danish kroner to expand its existing facilities in Bagsværd. The project will establish extra R&D capacity for manufacturing APIs to supply the company’s global clinical trials for oral and injectable products. The expansion is expected to be finished in 2024, creating about 160 new jobs.