Switzerland's Novartis to put in bid for DuPont's pharma business?

After Germany's Bayer expressed an interest in acquiring thepharmaceuticals business of DuPont (Marketletter March 26), Novartis has now entered into the fray as it looks to expand its operations in the all-important US market. The Swiss group's chief executive, Daniel Vasella, is reported by Reuters to have told journalists at Novartis' annual general meeting that "we will look at this kind of acquisition, evaluate it. I think it would be a mistake not to do it."

Dr Vasella added that "for us, it would mean entering a new area," referring to DuPont's only major product, the anti-HIV drug Sustiva (efavirenz). He went on to say that the US firm has a pipeline that is complementary to Novartis, ie in the cardiovascular area.

In financial terms, a deal with DuPont would not break the bank at Novartis, and chief financial officer Raymund Breu said that an acquisition of that type would not distract the firm from key product launches ahead. Nevertheless, Bayer and Novartis are unlikely to be the only firms looking at DuPont, and the rumor-mill has also thrown up the names of Roche and GlaxoSmithKline.