Sandoz completes acquisition of EBEWE Pharma, improving global patient access to affordable injectable cancer medicines

9/24/2009, 7:15 AM (Source: GlobeNewswire)


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* Acquisition of EBEWE Pharma provides strong platform for future
growth of differentiated generics business

* New global center of excellence for injectable cancer medicines
broadens portfolio of affordable medicines for patients

* Sandoz to focus on quick and seamless integration for customers
and employees

Holzkirchen, September 24, 2009 - Sandoz announced today that it has
completed its USD 1.3 billion acquisition of EBEWE Pharma's specialty
generic injectables business, paving the way for the creation of a
global center of excellence in generic oncology injectables.

"We are delighted to combine EBEWE Pharma's portfolio and pipeline of
high-quality injectables with our global leadership in
biopharmaceuticals, anti-infectives and other innovative
technologies," said Sandoz CEO Jeff George. "This will greatly
enhance the range of affordable generic anti-cancer medicines Sandoz
offers to patients worldwide."

In addition to globalizing Austrian-based EBEWE's operations through
its integration within Sandoz, the world's second largest generics
company, the transaction offers Sandoz a complementary portfolio of
differentiated generics, with more than 15 marketed products and a
strong pipeline with several near-term launches.

Sandoz and EBEWE Pharma will now focus on implementing their joint
integration plans to deliver a smooth transition for all
stakeholders. A new global business unit and center of excellence is
being created to improve customer service worldwide. The new unit
will be based in Unterach, Austria and led by former EBEWE Pharma CEO
Friedrich Hillebrand, who will join the Sandoz Executive Committee.

Key priorities for the integration include capitalizing on EBEWE
Pharma's deep hospital marketing capabilities, strong customer
partnerships, skills in developing differentiated generics, and
expertise in injectables manufacturing. The majority of integration
activities are expected to be completed shortly.

Annual sales of the global generic injectables sector were USD 10-12
billion in 2008, according to IMS Health, with injectable oncology
medicines accounting for about 30%. Additionally, injectable oncology
medicines with a total of USD 9 billion in annual sales are expected
to lose patent protection by 2015.

This release contains certain forward-looking statements that can be
identified by terminology such as "platform for future growth," "to
focus on," "paving the way for," "pipeline," "will," "planned,"
"expected," or similar expressions, or by express or implied
discussions regarding the potential impact on Novartis and its Sandoz
Division of the EBEWE acquisition, including express or implied
discussions regarding potential future sales or earnings of the
Novartis Group or its Sandoz Division and any potential synergies,
strategic benefits or opportunities as a result of the acquisition.
You should not place undue reliance on these statements. Such
forward-looking statements reflect the current views of the Group
regarding future events, and involve known and unknown risks,
uncertainties and other factors that may cause actual results to be
materially different from any future results, performance or
achievements expressed or implied by such statements. There can be no
guarantee that Novartis or its Sandoz Division, will achieve any
particular future financial results or future growth rates or that
Novartis or Sandoz will be able to realize any potential synergies,
strategic benefits or opportunities as a result of the EBEWE
acquisition. Neither can there be any guarantees with respect to the
impact of the proposed acquisition on Novartis' credit rating. In
particular, management's expectations could be affected by, among
other things, uncertainties involved in the development of new
generic pharmaceutical products; unexpected patent litigation
outcomes; unexpected inabilities to obtain or maintain exclusivity
periods for developed products; unexpected regulatory actions or
delays or government regulation generally; Sandoz' ability to
successfully merge the two companies and retain key personnel;
competition in general; government, industry, and general public
pricing and other political pressures; the impact that the foregoing
factors could have on the values attributed to the Group's assets and
liabilities as recorded in the Group's consolidated balance sheet;
and other risks and factors referred to in Novartis AG's current Form
20-F on file with the US Securities and Exchange Commission. Should
one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those described herein as anticipated, believed,
estimated or expected. Novartis is providing the information in these
materials as of this date and does not undertake any obligation to
update any forward-looking statements as a result of new information,
future events or otherwise.

# # #

About Sandoz

Sandoz, a Division of the Novartis group, is a global leader in the
field of generic pharmaceuticals, offering a wide array of
high-quality, affordable products that are no longer protected by
patents. Sandoz has a portfolio of approximately 1000 compounds and
sells its products in more than 130 countries. Key product groups
include antibiotics, treatments for central nervous system disorders,
gastrointestinal medicines, cardiovascular treatments and hormone
therapies. Sandoz develops, produces and markets these medicines
along with pharmaceutical and biotechnological active substances and
anti-infectives. In addition to strong organic growth in recent
years, Sandoz has made a series of acquisitions including Lek
(Slovenia), Sabex (Canada), Hexal (Germany) and Eon Labs (US). In
2008, Sandoz employed around 23,000 people worldwide and posted sales
of USD 7.6 billion.

# # #

For further information
Central media line: +41 61 324 2200

Eric Althoff Chris Lewis
Novartis Global Media Relations Sandoz Global Communications
+49 8024 476 2550
+41 61 324 7999

Novartis Investor Relations

International: North America:
Ruth Metzler-Arnold Richard Jarvis +1 212 830 2433
Pierre-Michel Bringer Jill Pozarek +1 212 830 2445
John Gilardi Edwin Valeriano +1 212 830 2456
Thomas Hungerbuehler E-mail:
Isabella Zinck
Central phone no: +41 61 324

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