Novartis buys generics cancer firm for $1.2B

Novartis says it is planning to acquire the Austrian firm EBEWE Pharma to create a strategic generic oncology injectable business unit and  strong global platform for future growth. This will provide the Swiss  drug major's copy drugs business, Sandoz, with the opportunity to expand  in the cancer therapy market, which is predicted to reach a value of  $60.0 billion by 2017.

Under the terms of the definitive agreement, Novartis will pay 925.0  million euros ($1.2 billion) for the business (excluding its injectable  neurological products operations), which includes generic copies of  standard-of-care oncology injectables, such as paclitaxel, epirubicin,  methotrexate, oxaliplatin, carboplatin, doxorubicin and gemcitabine.  The global generic injectables market is valued at $10.0 billion to  $12.0 billion, with oncology products making up around 30% of the total.

Since becoming independent in 2001 through a management buyout from the  German BASF group, EBEWE has built a leading position in Europe and in  many emerging markets while also establishing a presence in the USA.  The business is growing dynamically, delivering 20% compound annual  sales growth since 2006. Net sales for the fiscal year 2008 were188.0  million euros and operating income was 53.0 million euros.