Novartis to Buy Generic Drug Companies

Published Online: Friday, April 1, 2005

Novartis plans to expand its presence as a maker of generic drugs with the purchase of Hexal of Germany and its New York affiliate, Eon Labs, for a reported $8.4 billion in cash. Hexal is the second-largest generic drug manufacturer in Germany.

The purchase would give Novartis a much bigger piece of the generic drug pie. Hexal would bring Novartis >120 new products, including painkillers and cholesterol drugs. Eon would bring a low-cost copy of a popular antidepressant (bupropion) and an extensive pipeline of new generic drugs.

The acquisition will occur in stages. Novartis already has signed an agreement to pay $7.4 billion for all of Hexal and for 67.7% of Eon. After the transaction closes (scheduled for the second half of 2005), Novartis plans to offer $31 a share, or about $1 billion, for the rest of Eon.



Latest Articles
Acute respiratory infections such as the common cold are often accompanied by cough and congestion caused by mucus hypersecretion.
Poor medication adherence is responsible for unnecessary illness, hospitalizations, disability, and premature death, particularly among patients with chronic diseases.
Police and a CVS pharmacy are on the lookout for a man who stole several boxes of diabetic test strips.
The FDA has approved Merck’s supplemental new drug application for single-dose fosaprepitant dimeglumine for injection.
Latest Issues
$auto_registration$
VSEO N/A