Receive our newsletter – data, insights and analysis delivered to you
  1. Deals
October 11, 2021

Sandoz acquires cephalosporin antibiotics business of GSK

Through the acquisition of GSK's cephalosporin antibiotics business, Sandoz obtained the rights to GSK’s Zinnat, Zinacef and Fortum brands.

Novartis’ subsidiary Sandoz has completed its previously announced acquisition of GlaxoSmithKline’s (GSK) cephalosporin antibiotics business for $500m.

This follows an agreement signed by the companies in February this year.

The transaction has granted Sandoz the rights to GSK’s Zinnat, Zinacef and Fortum brands, which are sold in more than 100 markets.

It excludes the rights to certain brands that GSK earlier divested in the US, Australia and Germany.

Additionally, GSK will retain full brand rights in India, Pakistan, Egypt, and China, as well as to certain brands in Japan, excluding Taiwan, Hong Kong and Macau.

Sandoz noted that the three brands have reported combined sales of about $140m in the relevant markets last year.

According to the agreement, GSK received $350m along with an additional $150m as milestone payments, subject to certain terms of the transaction.

Sandoz CEO Richard Saynor said: “Antibiotics are the backbone of modern healthcare systems and a central pillar of our worldwide Sandoz patient offering.

“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.”

The company plans to produce Zinnat at its own network sites as part of its integrated manufacturing strategy.

It also announced plans to make an investment of more than $173.5m (€150m) in its vertically integrated European antibiotics network in May.

 

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The pharmaceutical industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU