Novartis' Purchase Of Eon Clears FTC; Amide Gets Three Divested Generics
This article was originally published in The Pink Sheet Daily
The company gains final regulatory approval of its deal for Eon with an agreement to divest three generics to Amide. FTC’s proposed consent order instructs generic subsidiary Sandoz to supply two of the drugs – antidepressant desipramine and muscle relaxant orphenadrine – until Amide receives FDA manufacturing clearance.
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The required divestitures are quite significant relative to the size of the transaction: this is the second-largest divesture, but only the fifth-largest merger of generic firms.
Iceland-based Actavis will diversify its European-centric revenue base through the acquisition of Amide, located in New Jersey. An Amide manufacturing site currently under construction and slated for completion in 2006 could significantly boost U.S. capacity for the combined companies.
Addition of U.S., German companies will make Sandoz the global leader in generic sales, with combined 2004 pro forma revenues of $5.1 bil., Novartis says. Acquisition will enable Sandoz to become the "preferred partner" for "authorized" generic deals and to play a leading role in development of follow-on biologics.