Switzerland-based Novartis yesterday evening announced that it has sold its US dermatology unit to Aurobindo Pharma for $900m. The deal includes an additional payment of $100m of potential earn-outs, based on successful completion of precise milestones.
The divested unit is part of Sandoz division and boasts a portfolio of as many as 300 products, manufactured in Wilson (North Carolina), Hicksville and Melville (New York), which generated approximately $600m in the first half of the year. The agreement affects 750 employees.
The dismissal is consistent with Novartis’ strategy for Sandoz, that is focusing on businesses ensuring better financial return, such as biosimilars. Novartis’s shares have remained stable in pre-market trading in Europe, while Aurobindo’s were soon up by 5.8% (Mumbay).