RTTNews | Oct 11, 2021 05:16AM EDT

05:16 Monday, October 11, 2021 (RTTNews.com) - Novartis Pharma AG (NOVN) Monday said its unit Sandoz, has completed its acquisition of GlaxoSmithKline's (GSK) cephalosporin antibiotics business for an undisclosed sum. The deal gives Sandoz rights to three established brands Zinnat, Zinacef, and Fortum in over 100 markets.

In 2020, the three brands had combined sales of approximately $140 million in the relevant markets. However, the rights excludes rights to certain brands previously divested by GSK in the U.S., Australia, and Germany.

According to the deal, which was announced in February this year Sandoz had agreed to pay GSK $350 million at closing, as well as earn-out payments of up to $150 million. GSK will retain full brand rights in China (excluding Taiwan, Hong Kong and Macau), India, Pakistan, and Egypt and to certain brands in Japan, the Basel headquartered company said in a statement.

In the long term, Sandoz plans to manufacture Zinnat at sites in its own network, which has global antibiotics production centered on its lead production site in Kundl, Austria, it added.

In May, Sandoz had announced plans to invest over 150 million euros in its uniquely vertically-integrated, European-based antibiotics network.

"Cephalosporins are the largest antibiotic segment by global sales and this acquisition complements our #1 position in generic penicillins, the other key segment. It also sets us up for additional synergies driven by an increased promotional footprint across markets," Sandoz CEO Richard Saynor said.

At NYSE, Novartis had closed at $82.83 per share on Friday, a rise of 0.42 percent from the previous close of $82.48 per share.

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