Brussels approves acquisition of Ebewe by Novartis
The European Commission has granted competition approval to the takeover of Austria's generic pharmaceuticals company Ebewe SP by Swiss drugmaker Novartis, enabling the Euro 1.3bn deal to go ahead. Although Novartis makes generic medicines through its Sandoz division, the EC concluded that the deal "would not significantly impede effective competition" in Europe.
The European Commission has granted competition approval to the takeover of Austria's generic pharmaceuticals company Ebewe SP by Swiss drugmaker Novartis, enabling the Euro 1.3bn deal to go ahead. Although Novartis makes generic medicines through its Sandoz division, the EC concluded that the deal "would not significantly impede effective competition" in Europe.
Ebewe SP is the generic cancer drugs operation of Ebewe Pharma. It also undertakes contract manufacturing of finished dose medicines.
The EC said "significant market shares and overlaps between the parties" activities would only arise in a small number of markets where a sufficient number of credible competitors would remain." It did not attach conditions to its approval.
Sandoz said the acquisition would pave the way for the creation of a "global centre of excellence in generic oncology injectables".
The new unit will be based in Unterach, Austria and headed by former Ebewe Pharma chief executive Friedrich Hillebrand, who joins the executive committee of Sandoz.
"The acquisition of Ebewe provides a strong platform for future growth of a differentiated generics business," the company said.
Injectable oncology medicines are said to account for around 30% of the US$10-12bn (â"šÂ¬6-8bn) global generic injectables sector.
