Swiss drugmaker Novartis’ Sandoz-like division will buy GlaxoSmithKline’s antibiotic business, which includes brands such as Zinnat, Zinacef and Fortum, for $500 million.
Sandoz will pay GSK about $350 million for its cephalosporin antibiotic business when the deal closes, which is expected to close in the second half of this year, and $150 million will be paid when specific contract terms are met.
It is reported that the British company GSK will separate into two companies, one of which will focus on over-the-counter products to buy and the other will focus on prescription drugs in addition to vaccines, as it seeks to reduce the company’s structure while investing in new drugs.
GSK says the three brands that are part of the deal raised $140 million in sales in the drug market last year and are now out of patent protection.
According to the deal, Sandoz will be able to sell these brands in all markets except Australia, China, Egypt, Germany, India, Japan, Pakistan and the United States.
GSK’s other antibiotic brands are not part of the deal, the British company said, adding that it will close its production of cephalosporin antibiotics when it has transferred production to Sandoz, which is expected to be completed by 2025.
Although GSK did not announce any staff contractions associated with the deal, it did say that all 170 jobs in the Zinnat brand’s supply chain would be affected, and added that it might provide some employee support, but the company did not provide any further details.