CSL updates on Novartis influenza vaccines acquisition

Australia’s CSL Limited (ASX:CSL) says it has secured the necessary approvals required to proceed with the acquisition of the influenza vaccines business of Swiss pharma giant Novartis (NOVN: VX) and that it is working with Novartis to bring forward the close date for the transaction.

CSL, which saw its shares gain 2.7% to A$98.76 on the news, also said the new CSL subsidiary resulting from the acquisition will be called Seqirus.

In October 2014, CSL announced an agreement to acquire the influenza vaccines business of Novartis for $275 million along with plans to combine it with bioCSL. The company indicated it was likely to close the transaction on December 31, 2015, subject to necessary approvals. Now that these approvals have been secured, CSL and Novartis have agreed to expedite the close with the aim of completing the transaction in the next few days. CSL’s net earnings in the current financial year are not expected to be materially affected by the change in close date.

Seqirus will be the second largest influenza vaccines business in the $4 billion global industry. It will have manufacturing plants in the USA, UK, Germany and Australia, commercial presence in approximately 20 countries, a differentiated product portfolio and strong pandemic and pre-pandemic franchises.

Significant acquisition for CSL