BASEL (dpa-AFX) - Sandoz, a Novartis (NVS) division, agreed to buy GlaxoSmithKline Plc.'s (GSK.L, GSK) cephalosporin antibiotics business.
The deal includes the global rights to three established brands (Zinnat, Zinacef and Fortum) in more than 100 markets. The deal excludes the rights in the US, Australia and Germany to certain of those brands, which were previously divested by GSK, and in India, Pakistan, Egypt, Japan and China, which will be retained by GSK.
Sandoz noted that it will pay GSK $350 million at closing, plus additional milestone payments of up to $150 million. Closing of the transaction is expected in the second half of 2021. In 2020, the three brands had combined sales of about $140 million in the relevant markets.
Sandoz said it plans in the longer term to manufacture Zinnat at sites in its own network, which has global antibiotics production centered on its lead production site in Kundl, Austria. Once the transaction is completed, GSK will supply Zinnat to Sandoz under a manufacturing and supply agreement, while supporting a transfer of the related manufacturing operations to Sandoz.
Sandoz expects the process to last for about four years from the close of the transaction onwards.
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