Novartis acquires European generics business of BASF Pharma

05-Dec-2000

Novartis generics announced today that it is acquiring the European generics business of BASF Pharma. The acquisition includes companies in six European countries and, subject to regulatory approvals, will be effective from 1 January 2001. The purchase price is EURO 115 million (approx. CHF 174 million).

Oswald Sellemond, Head of Novartis Generics, commented: "This acquisition will give us rapid entry into new markets in addition to enhancing our presence in areas that are attractive for the future. We are taking a significant step towards our goal of being present in every major generics market."

The six BASF Pharma generics companies are based in Germany, France, Italy, the Netherlands, Switzerland, and Spain. Overall, they employ 224 people and generate total annual sales of EURO 60 million (approx. CHF 91 million). As Sellemond explained, "New openings for off-patent drugs in the pharmaceuticals market together with the expansion of our product range provide us with a solid basis for strong growth. We expect further impetus to come from our broad range of new products such as Curam® and other pharmaceuticals in the Biochemie portfolio, in addition to the numerous projects we have in our pipeline."

For BASF, the sale is consistent with its strategy – announced at the beginning of 2000 – of focusing on innovative prescription drugs. According to Dr. Thorlef Spickschen, Head of BASF Pharma: "The sale of our generics business is another important step for BASF Pharma towards our objective of becoming a profitable drugs specialist by focusing on innovations." He added: "We are handing over to a large and successful company a business that has been carefully built up. This will further boost growth, which is the best guarantee for the future in a market that is developing dynamically."

This press release contains forward-looking statements that can be identified by terminology such as "subject to", "will", "enhancing" "new openings" "expect", or similar expressions. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance, or achievements expressed or implied by such statements. In particular, management's expectations regarding this acquisition could be affected by, among other things, uncertainties relating to product development; unexpected regulatory delays or restrictions or government regulation generally; the ability of the company to successfully integrate the new businesses; the ability to operate successfully in new and unknown markets; and competition in general.

https://www.chemeurope.com/en/news/444/novartis-acquires-european-generics-business-of-basf-pharma.html