Aurobindo bids $1.6B for Novartis' U.S. dermatology generics: report
As Novartis tries to shed some of its Sandoz offerings in the U.S. under intense pricing pressure, the drugmaker may have found a buyer for a generic dermatology business. India's Aurobindo has submitted a $1.6 billion offer for the unit, according to Livemint.
The deal would include manufacturing facilities and other infrastructure to support the products, according to the publication, which cites unnamed sources. Private equity funds and other drugmakers have also expressed interest in the business, according to one of Livemint's sources.
Novartis has been looking at selling, or abandoning, some generic offerings as pricing in the U.S. has come under fire. The drugmaker's CEO Vas Narasimhan confirmed on a conference call last month that the review is still underway.
The Sandoz business review comes following years of tough pricing dynamics in the U.S. At Novartis, the company has increased its presence in oncology, biosimilars and complex generics.
As struggling generics players face intense pricing pressure, they've turned to M&A as one way to fight back. Amneal and Impax have merged to gain scale, and market watchers predict Endo could try dealmaking of its own.
The Novartis deal talk closely follows Sanofi and Advent International's announcement that the companies are in exclusive talks for Sanofi's €2 billion European generics unit.
May 8, 2018
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