Sandoz to acquire generic injectables business
pharmafile | May 28, 2009 | News story | Sales and Marketing |Â Â genericsÂ
Sandoz, the generics arm of Novartis, is to acquire the generic injectables business of Austrian company EBEWE Pharma.
The deal, which will cost Sandoz 925 million euros, is expected to go through this year and is attractive because of the access it provides to EBEWEs oncology products.
The global oncology market is set to double to $60 billion in the next eight years, the company said.
Novartis chairman Daniel Vasella believes "the move fits our strategy and improves our ability to help cancer patients around the world by providing easier access to therapies."
Over the next six years or so, injectable oncology medicines with annual sales of $9 billion are expected to lose patent protection.
EBEWE products such as paclitaxel, epirubicin, methotrexate, oxaliplatin, carboplatin, doxorubicin and gemcitabine are essential components of standard-of-care guidelines for treating many types of cancers, Novartis said in a statement.
"These medicines will remain the backbone of multi-drug treatments in the fight against cancer," continued Vasella.
"EBEWE Pharma will further strengthen our pipeline with many planned near-term launches," he concluded.
The company has more than 20 distinct molecules presenting such opportunities – however, EBEWE's separate injectable neurological products business will not be part of the deal.
Sandoz, the second-largest generics company in the world, plans to create an oncology injectables business unit, to be run by EBEWE chief executive Friedrich Hillebrand and based in Unterach, Austria.
"As the world market for generic injectables to treat cancer continues to expand, our specialty generics business will enjoy a much broader global reach as part of Sandoz," Hillebrand said.
"We will also be able to offer greater benefits to patients and healthcare providers while creating a more competitive growth platform for our complementary businesses."
Emphasis is expected to be on EBEWEs hospital marketing and expertise in injectables manufacturing.
The manufacturer was a subsidiary of BASF until it was bought by its management in 2001.
Net sales for 2008 were 188 million euros with an operating income of 53 million euros.
The company says it has delivered 20% compound annual sales growth since 2006.
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