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Aurobindo Pharma, Sandoz Inc call off $900 million deal – Moneycontrol

Aurobindo Pharma on Thursday said the USD 900 million deal to acquire Sandoz Inc’s US-based generic oral solids and dermatology businesses has been mutually called off.

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Aurobindo Pharma on Thursday said the USD 900 million deal to acquire Sandoz Inc’s US-based generic oral solids and dermatology businesses has been mutually called off.

Holzkirchen-based Sandoz is a leading player in generic pharmaceuticals and biosimilars and a division of Swiss drug major Novartis.

“This decision was taken as approval from the US Federal Trade Commission for the transaction was not obtained within anticipated timelines,” Aurobindo Pharma said in a regulatory filing.

In September 2018,  Aurobindo Pharma had said that its US subsidiary has entered into an agreement to acquire commercial operations and three manufacturing facilities in America from Sandoz Inc, USA, a Novartis Division, for USD 900 million.

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The acquisition was to be made through its wholly-owned subsidiary Aurobindo Pharma USA Inc.

The deal was expected to close in 2019 following the completion of customary closing conditions, including US Federal Trade Commission clearances. Repeated delays, however, led to it being mutually terminated.

The transaction if completed would have positioned the Hyderabad- based firm as the second largest dermatology player and the second-largest generics company in the US by prescriptions.

The acquisition would have added around 300 products, including projects in development as well as commercial and manufacturing capabilities in the US, complementing and expanding Aurobindo’s portfolio and pipeline.

The termination leaves hydroxychloroquine, a malaria drug that Novartis believes as a potential coronavirus treatment, in Sandoz’s generic drug portfolio.

The drugmaker’s portfolio comprises around 1,000 molecules, covering all major therapeutic areas.

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First Published on Apr 2, 2020 07:35 pm