Sandoz Completes Acquisition Of EBEWE Pharma

Improving global patient access to affordable injectable cancer medicines

• Acquisition of EBEWE Pharma provides strong platform for future growth of differentiated generics business
• New global center of excellence for injectable cancer medicines broadens portfolio of affordable medicines for patients
• Sandoz to focus on quick and seamless integration for customers and employees

Sandoz announced recently that it has completed its USD 1.3B acquisition of EBEWE Pharma's specialty generic injectables business, paving the way for the creation of a global center of excellence in generic oncology injectables.

"We are delighted to combine EBEWE Pharma's portfolio and pipeline of high-quality injectables with our global leadership in biopharmaceuticals, anti-infectives and other innovative technologies," said Sandoz CEO Jeff George. "This will greatly enhance the range of affordable generic anti-cancer medicines Sandoz offers to patients worldwide."

In addition to globalizing Austrian-based EBEWE's operations through its integration within Sandoz, the world's second largest generics company, the transaction offers Sandoz a complementary portfolio of differentiated generics, with more than 15 marketed products and a strong pipeline with several near-term launches.

Sandoz and EBEWE Pharma will now focus on implementing their joint integration plans to deliver a smooth transition for all stakeholders. A new global business unit and center of excellence is being created to improve customer service worldwide. The new unit will be based in Unterach, Austria and led by former EBEWE Pharma CEO Friedrich Hillebrand, who will join the Sandoz Executive Committee.

Key priorities for the integration include capitalizing on EBEWE Pharma's deep hospital marketing capabilities, strong customer partnerships, skills in developing differentiated generics, and expertise in injectables manufacturing. The majority of integration activities are expected to be completed shortly.

Annual sales of the global generic injectables sector were USD 10-12B in 2008, according to IMS Health, with injectable oncology medicines accounting for about 30%. Additionally, injectable oncology medicines with a total of USD 9B in annual sales are expected to lose patent protection by 2015.

About Sandoz

Sandoz, a Division of the Novartis group, is a global leader in the field of generic pharmaceuticals, offering a wide array of high-quality, affordable products that are no longer protected by patents. Sandoz has a portfolio of approximately 1000 compounds and sells its products in more than 130 countries. Key product groups include antibiotics, treatments for central nervous system disorders, gastrointestinal medicines, cardiovascular treatments and hormone therapies. Sandoz develops, produces and markets these medicines along with pharmaceutical and biotechnological active substances and anti-infectives. In addition to strong organic growth in recent years, Sandoz has made a series of acquisitions including Lek (Slovenia), Sabex (Canada), Hexal (Germany) and Eon Labs (US). In 2008, Sandoz employed around 23,000 people worldwide and posted sales of USD 7.6B.

SOURCE: Sandoz