INSUBCONTINENT EXCLUSIVE:
Novartis AG said on Thursday it would sell the dermatology and generic US oral solids portfolios of Sandoz US to Aurobindo Pharma Ltd for
$900 million, as the Swiss drug maker looks to focus on higher growth areas.The deal also includes about 300 products and additional
development projects of Sandoz and an additional $100 million in performance-based payments, Novartis said.The 131-year-old Sandoz unit was
hurt by price pressure in the United States, prompting Novartis chief executive officer Vas Narasimhan to sell the Sandoz unit.He has so far
said Sandoz businesses elsewhere remain core parts of Novartis
Mr Narasimhan is also keeping Sandoz biosimilars business - less-expensive near copies of complex biological medicines whose patents have
expired - on hopes that rising demand from cash-strapped governments and insurers seeking to contain costs will help Sandoz boost its
margins.Novartis had earlier this year expressed its intention to sell the Sandoz unit after reporting disappointing sales form the
unit."Through this transaction, we are refocusing our business but also striving to ensure continuity of supply of important long-used
generic medicines for patients and customers in the US," said Richard Francis, Sandoz chief executive.Following the transaction, the Sandoz
respiratory and ophthalmics, the company said."Overall the transaction will position Aurobindo as the 2nd largest dermatology player and the
2nd largest generics company in the US by prescriptions," said N
Govindarajan, managing director of Aurobindo Pharma.As part of the transaction, Aurobindo Pharma USA Inc, a unit of the Hyderabad,
India-based company, will acquire the plants in Wilson, North Carolina, as well as Hicksville and Melville, New York, Novartis said.About
750 employees as well as the field representatives for the PharmaDerm branded dermatology business are expected to transfer to Aurobindo
