Hyderabad, India-based Aurobindo Pharma signed a definitive agreement to acquire certain assets from Sandoz Inc., U.S.A., a Novartis division, for a consideration of $900 million.
The proposed acquisition will be on a debt-free and cash-free basis, and comprises the dermatology business and a portfolio of oral solid products along with commercial and manufacturing infrastructure at Wilson, NC, and Hicksville, Melville, N.Y. The deal will establish Aurobindo Pharma as the second largest dermatology player as well as the second largest generics company in the U.S. by prescriptions.
Subsidiary Aurobindo Pharma U.S.A. Inc., and Sandoz will enter into a transitional services agreement to support the ongoing growth plans of the businesses being acquired by the Indian company. The transaction is expected to close in the course of 2019 following the completion of customary closing conditions, including FTC clearance.
