Sandoz Acquires Aspen's Japan Business for $330 Million to Expand Asian Generics Presence

VCBeat (WeChat ID: vcbeat) learned from foreign media that on November 11, 2019, local time, Sandoz, the generic drug division of Novartis, acquired the Japan operations of Aspen Global Incorporated, a subsidiary of Aspen Pharmacare Holdings, for $330 million, thereby expanding its business into Asia. On the morning of November 11, Novartis stated that the transaction strengthens Sandoz’s strategic focus on Japan.

Novartis stated that the acquisition would enable Sandoz to expand its market share in the world’s third-largest generic drug market. In its announcement, the company noted that Aspen’s portfolio in Japan comprises approximately 20 products, which are currently off-patent branded medicines, with a focus on anesthetics including Xylocaine. Key branded products in Aspen’s portfolio include Imuran, and the transaction also covers brands specific to the Japanese market. Novartis added that the medicines in Aspen’s portfolio would complement Sandoz’s investments and product lineup in Japan, thereby enhancing access to hospitals.

Sandoz CEO Richard Saynor affirmed the significance of this acquisition for Sandoz, stating that it would help consolidate the company’s foothold in Japan. In a statement, Saynor said, “The acquisition of Aspen’s business in Japan will strengthen our position in the generic drug market. We are committed to becoming the world’s leading and most valuable generic pharmaceutical company to meet the needs of patients and customers in the market.”

In addition to the acquired pharmaceutical portfolio, the transaction also includes Aspen’s dedicated sales, marketing, and medical affairs organization in Japan. Upon closing, the acquired Aspen business will be integrated into Sandoz. Novartis stated that the deal will strengthen its ability to serve patients and customers through the hospital channel.

Furthermore, Aspen has entered into a five-year manufacturing and supply agreement with Sandoz. The agreement includes a two-year extension option for the supply of active pharmaceutical ingredients (APIs), intermediates, and finished products associated with the divested brands.

The acquisition is expected to be completed in the first half of 2020. Upon closing, Sandoz has agreed to pay Aspen deferred consideration of up to €100 million, subject to the satisfaction of certain conditions. These conditions were not disclosed in the announcement.

(Compiled by Xiong Hui)