Sandoz has successfully completed its acquisition of GSK’s cephalosporin antibiotics business.
Sandoz will pay GSK $350 million at closing, plus additional milestone payments of up to $150 million, subject to the terms of the transaction.
Through this transaction, Sandoz has acquired rights to three established brands (Zinnat, Zinacef and Fortum) in more than 100 markets. In 2020, the three brands had combined sales of approximately $140 million in the relevant markets.
“Antibiotics are the backbone of modern healthcare systems and a central pillar of our worldwide Sandoz patient offering,” said Richard Saynor, CEO of Sandoz, a Novartis division.
“The successful and timely closing of this important transaction is further proof of our commitment at Sandoz to be a leading global supplier of these essential medicines.
“Cephalosporins are the largest antibiotic segment by global sales and this acquisition complements our #1 position in generic penicillins, the other key segment. It also sets us up for additional synergies driven by an increased promotional footprint across markets.”
The transaction excludes rights to certain brands previously divested by GSK in the US, Australia and Germany. GSK will also retain full brand rights in China (excluding Taiwan, Hong Kong and Macau), India, Pakistan, and Egypt and to certain brands in Japan.
In line with its integrated manufacturing strategy, Sandoz intends 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.
In May, Sandoz announced plans to invest more than $150 million in its uniquely vertically-integrated, European-based antibiotics network.