Novartis to add EBEWE Pharma generic injectables business to Sandoz division
Novartis is to acquire the generic injectables business of Austrian company EBEWE Pharma for Euro 925m (US$1.2bn), providing its Sandoz generic pharmaceuticals division with an opportunity to grow while improving access to many generic oncology medicines.
Novartis is to acquire the generic injectables business of Austrian company EBEWE Pharma for Euro 925m (US$1.2bn), providing its Sandoz generic pharmaceuticals division with an opportunity to grow while improving access to many generic oncology medicines.
EBEWE Pharma's separate injectable neurological products business is not part of this transaction.
Several of EBEWE Pharma's products - including paclitaxel, epirubicin, methotrexate, oxaliplatin, carboplatin, doxorubicin and gemcitabine - are essential components of standard-of-care guidelines for treating many types of cancers.
Since becoming independent in 2001 through a management buyout, EBEWE Pharma has built a leading position in Europe and in many emerging markets while also establishing a presence in the US. The business has delivered 20% compound annual sales growth since 2006. Net sales in 2008 were €188m (US$272m).
Ready to use liquid formulations, new dosage forms, advanced delivery devices and innovative packaging such as Onco-Safe have been key to this success.
"As the world market for generic injectables to treat cancer continues to expand, our specialist generics business will enjoy a much broader global reach as part of Sandoz," said Friedrich Hillebrand, ceo of EBEWE Pharma.
Sandoz will form a new global centre of excellence around this business, led by Hillebrand and based in Unterach, Austria. Key priorities for this unit include capitalising on EBEWE Pharma's capabilities in hospital marketing and strong customer partnerships, skills in developing differentiated generics and expertise in injectables manufacturing.
Oncology drugs form one of the largest and fastest-growing sectors of the global generic injectables market. Annual sales of the global generic injectables sector were US$10-12bn in 2008, according to IMS Health, with injectable oncology medicines accounting for about 30%. Additionally, injectable oncology medicines with a total of US$9bn of annual sales are expected to lose patent protection by 2015.
