Sandoz Completes Acquisition of Aspen’s Japanese BusinessBy
Sandoz, the generics and biosimilars arm of Novartis, has completed its acquisition of the Japanese business of Aspen Global Inc. (AGI), a wholly owned subsidiary of the specialty and branded pharmaceutical company, Aspen Pharmacare, in a deal worth up to EUR 400-million ($440-million). Sandoz had previously announced the acquisition in November 2019.
Sandoz acquired all of the shares in Aspen Japan K.K. and associated assets held by AGI. Aspen Japan K.K. is a wholly owned subsidiary of AGI and forms part of the Aspen Group, which is headquartered in Durban, South Africa.
Aspen’s portfolio in Japan consists primarily of off-patent branded medicines with a focus on anesthetics and specialty brands. Aspen’s portfolio in Japan consists of approximately 20 products of off-patent medicines with a focus on anesthetics, including Xylocaine (lidocaine) and specialty brands, including Imuran (azathioprine) and local brands.
Additionally, Sandoz has entered into a five-year manufacturing and supply agreement (with an additional two-year extension option) with AGI supplying active pharmaceutical ingredients and semi-finished and finished goods related to the portfolio of products acquired by Sandoz through the transaction.
At the time of the announced acquisition agreement in November 2019, Sandoz agreed to pay an initial cash consideration of EUR 300 million ($331 million). Sandoz also agreed, upon certain conditions being fulfilled after closing, to pay certain deferred consideration to AGI. As of the planned acquisition in November 2019, it was anticipated that the amount of deferred consideration to be paid would not exceed EUR 100 million ($110 million). The deferred conditional consideration relates to milestone payments to be made to AGI contingent upon achieving certain supply criteria and licensing opportunities. As of the planned acquisition in November 2019, it was expected that all milestones earned will have been received by December 31, 2023.