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Sandoz To Buy Aspen's Japanese Unit For Initial Cash Payment Of EUR 300 Mln

Sandoz Inc., the generics division of Swiss drug maker Novartis AG (NVS), announced Monday that it has entered into a binding agreement for the planned acquisition of the Japanese business of Aspen Global Inc. or AGI for an initial cash consideration of 300 million euros.

Under the deal, Sandoz has also agreed, upon certain conditions being fulfilled after closing, to pay certain deferred consideration to AGI of up to 100 million euros.

AGI is a unit of Aspen Pharmacare Holdings Limited, and forms part of South Africa-based Aspen Group .

The planned acquisition consists of shares in Aspen Japan K.K. and associated assets held by AGI. The company noted that Aspen portfolio in Japan consists primarily of off-patent branded medicines.

These include approximately 20 products, now off-patent branded medicines with a focus on anesthetics- including Xylocaine, specialty brands -including Imuran, and local brands. Full-year sales for the fiscal year ending in 2019 were 130 million euros.

Completion of the transaction is conditional upon certain customary conditions precedent being fulfilled and is expected to occur in the first half of 2020.

In addition, AGI has entered into a five year manufacturing and supply agreement, with an additional two year extension option, with Sandoz, which will take effect from completion of the deal. The agreement is for the supply of active pharmaceutical ingredients, semi-finished and finished goods related to the portfolio of divested brands.

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