Sandoz to buy Aspen's Japanese generics operations

Sandoz, the generics and biosimilars arm of Swiss pharma giant Novartis (NOVN: VX), today announced a binding agreement for the acquisition of the Japanese business of Aspen Global Incorporated (AGI), a wholly-owned subsidiary of South Africa’s Aspen Pharmacare (JSE: APN), with shares of the latter rising 2.6% to 11,616 rand.

The planned acquisition consists of shares in Aspen Japan KK and associated assets held by AGI. Under the agreed terms of the transaction, on closing Sandoz will pay an initial cash consideration of 300 million euros ($330.6 million).  Sandoz has also agreed, on certain conditions being fulfilled after closing, to pay certain deferred consideration to AGI. It is currently anticipated that the amount of deferred consideration to be paid will not exceed 100 million euros.

The acquisition will enable Sandoz to expand its presence in the third-largest worldwide generics marketplace. The acquisition would complement the Sandoz broad portfolio and pipeline of hospital generic and biosimilar products with a dedicated sales, marketing and medical organization; thereby enhancing its ability to serve patients and customers in the hospital channel. Completion of the transaction is conditional upon certain customary conditions precedent being fulfilled and is expected to occur in the first half of 2020.