Novartis May Have a Suitor for Sandoz

 Less than a month after Novartis indicated it might entertain a sale of its generic unit Sandoz, Reuters reported investment group EQT and the Struengmann family, who own a significant stake in BioNTech, are considering a potential offer for the company.

EQT and the Struengmann family could pay $21.6 billion for Sandoz. Citing a report in the German publication Handelsblatt, Reuters reported that other investors were likely to join in with the acquisition should it come to pass. For the Struengmann family, Sandoz is familiar territory.

According to the report, Thomas and Andreas Struengmann sold the generic drug company Hexal to Novartis in 2005, which became part of Sandoz. In addition to a stake in BioNTech, the Struengmann brothers also own Uruguay-based Mega Pharma SA, which is also a generics company.

In October, Novartis indicated it was reviewing the Sandoz business to determine the best move to maximize value for its shareholders. Like many other generics manufacturers, Sandoz has been struggling with falling prices in the U.S. market. In its third-quarter financial report, Novartis noted that net sales for Sandoz were $2.4 billion, a 20% decline in revenue. Sales volume in the U.S. is expected to decline further due to increased competition in the generics market.

Novartis said its strategic review of Sandoz will explore all options, including retaining the business to a complete separation.

https://www.biospace.com/article/novartis-may-have-a-suitor-for-sandoz-merck-secures-enough-acceleron-shares-to-close-deal/