Novartis reportedly in talks to acquire Amneal in $8 billion deal
pharmafile | November 15, 2016 | News story | Manufacturing and Production, Sales and Marketing | Amneal pharmaceuticals, Novartis, joe jimenez
Novartis are said to be eyeing a deal for Amneal pharmaceuticals in order to bolster its Sandoz generics business. Bloomsberg reported the apparent move on 13 November with a sale being worth a potential $8 billion, depending upon the structure of the deal.
Amneal is a generics business that has a portfolio of over 100 products, including pills, topic treatments, injectables, inhaled meds and patches. Amneal would be seen as a good fit to expand Sandoz and would cement its position as a leading producer of generics, with its current standing of third position in the US market.
This appears to be the reasoning behind the move, with CEO, Joe Jimenez, stating in an interview with Bloomsberg that: “If we were able to locate, let’s say, differentiated generics that would strengthen Sandoz’s position in certain geographies, that would be another priority”.
The move is part of an overall restructuring of the Novartis business. Novartis are widely believed to be looking to offload Alcon, its underperforming eye-care business. It also previously performed an asset swap with GlaxoSmithKline that bolstered its oncology business in return for its vaccines unit.
The move would see Novartis reinforce Sandoz when other key players in the generics business are doing the same. Teva, a key rival, acquired Allergan’s generics business in a $40 billion deal earlier this year while Mylan has performed numerous acquisitions of a smaller value.
Regardless of the outcome of negotiations, it is expected that Novartis will be making moves within acquisitions. Currently the company is struggling with falling revenue whilst sitting on reasonable cash reserves.
Ben Hargreaves
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