Sandoz, Novartis’ generics division, is buying a GlaxoSmithKline antibiotics business for up to $500 million.
Per the agreement, Sandoz will pay GSK $350 million for the cephalosporin antibiotics business at the closing of the deal, which is expected in the second half of this year, plus a further $150 million upon hitting set milestones. The products being divested include the Zinnat, Zinacef and Fortum brands, all of which are now off-patent. In 2020, the three brands had combined sales of approximately $140 million in the relevant markets.
This deal comes as GSK seeks a leaner structure by splitting itself into two companies — one focused on OTC products and the other on prescription drugs and vaccines.
The business unit being sold focuses on the cephalosporin class of antibiotics, which are drugs widely used to treat various bacterial infections. The deal includes brands in more than 100 markets, but excludes the rights in the US, Australia and Germany to certain brands which were previously divested by GSK, and in India, Pakistan, Egypt, Japan and China, which will be retained by GSK.
Read the press release
