Sandoz Completes Acquisition of GSK's Cephalosporin Business

Sandoz, a Novartis division, has successfully completed the acquisition of GSK's cephalosporin antibiotics business.

The transaction, which including leading global brand Zinnat, complements Sandoz leadership in generic penicillins with a leading position in cephalosporins.

Through this transaction, Sandoz has acquired the rights to three established brands (Zinnat, Zinacef and Fortum) that are sold in more than 100 markets. In 2020, the three brands had combined sales of approximately $140m in the relevant markets.

“Antibiotics are the backbone of modern healthcare systems and a central pillar of our worldwide Sandoz patient offering,” said Sandoz CEO Richard Saynor. “The successful and timely closing of this important transaction is further proof of our commitment at Sandoz to be a leading global supplier of these essential medicines.”

“Cephalosporins are the largest antibiotic segment by global sales and this acquisition complements our position in generic penicillins, the other key segment. It also sets us up for additional synergies driven by an increased promotional footprint across markets,” Saynor added.

The transaction excludes rights to certain brands previously divested by GSK in the US, Australia and Germany. GSK will also retain full brand rights in China (excluding Taiwan, Hong Kong and Macau), India, Pakistan and Egypt and to certain brands in Japan.

In line with its integrated manufacturing strategy, in the longer term Sandoz intends to manufacture Zinnat at sites in its own network, which has global antibiotics production centred on its lead production site in Kundl, Austria.

In May, Sandoz announced plans to invest more than EUR 150 million in its uniquely vertically-integrated, European-based antibiotics network.