Date: 2015-08-03
Type of information: Pipeline acquisition
Acquired company: Novartis’ influenza vaccine business (Switzerland) to be renamed Seqirus
Acquiring company: CSL (Australia)
Amount: $275 million
Terms: * On August 3, 2015, Novartis announced that it has completed effective July 31, 2015 the divestiture of its influenza vaccine unit to CSL Limited. This marks the end of a series of transactions previously announced and completed,that are focusing Novartis on its three leading businesses of global scale - pharmaceuticals, generics and eye care. Seqirus will be the second largest influenza vaccines business in the US$4 billion global industry. It will have manufacturing plants in the US, UK, Germany and Australia, commercial presence in approximately 20 countries, a differentiated product portfolio and strong pandemic and pre-pandemic franchises. * On April 31, 2015, CSL announced that it has secured the necessary approvals required to proceed with the acquisition of the influenza vaccines business of Novartis and that it is working with Novartis to bring forward the close date for the transaction. The Company also said the new CSL subsidiary resulting from the acquisition will be called Seqirus. TThe business name Seqirus, derived from the term “securing health for all of us,” recognises a new beginning and bright future for the business. The new name will take effect in October 2015. Until then bioCSL will continue to operate under its existing name and Novartis influenza vaccines as “NVS Influenza Vaccines”. CSL indicated it was likely to close the transaction on 31 December 2015, subject to necessary approvals. Now that these approvals have been secured, CSL and Novartis have agreed to expedite the close with the aim of completing the transaction in the next few days. CSL's Chief Financial Officer, Gordon Naylor, would lead the new business. Mr Naylor is overseeing the integration planning and will continue to serve as CFO until his successor commences in the role. The management teams of bioCSL and the Novartis influenza vaccines business will remain in place until a new executive leadership team is appointed later this year. The Seqirus corporate office will be located in Maidenhead, just outside London in the UK. * On October 27, 2014, CS has announced an agreement to acquire Novartis’ global influenza vaccine business for US$275 million, which will be combined with CSL’s existing vaccines and pharmaceutical subsidiary, bioCSL. The acquisition will create the second largest vaccine company in the global influenza industry with manufacturing plants in the US, UK, Germany and Australia, a diversified product portfolio and strong pre-pandemic and pandemic capabilities in its major centres of operation.
Details: Combining bioCSL’s existing influenza vaccine operations with the Novartis business will create the number two global player in the US$4 billion global influenza vaccine industry, with manufacturing plants in the US, UK, Germany and Australia, a diversified product portfolio and strong pre-pandemic and pandemic franchises in its major centres of operation. The combined business will have a strong growth profile and is expected to achieve sales approaching US$1 billion per annum over the next 3 to 5 years. Final settlement of the transaction is expected to occur in the second half of calendar year 2015, subject to regulatory approval. Like bioCSL, Novartis is currently transitioning its three-strain (trivalent) influenza vaccine brands to four-strain (quadrivalent) formulations through a multi-year clinical program. This includes an adjuvanted influenza vaccine for both elderly and paediatric populations. The combined business will complete all clinical programs underway and look to market all bioCSL and Novartis influenza vaccine brands in multiple markets over time. CSL’s Parkville facilities in Melbourne will play a key role in the global manufacturing network of the combined business while continuing to offer seasonal influenza vaccine supply and pandemic preparedness and response to Australia.The combined business will continue to in-license and distribute a broad range vaccines and specialty pharmaceuticals, and produce blood typing reagents for local use. It will also continue to manufacture anti-venoms and Q fever vaccine as the world’s only supplier of these uniquely Australian medicines.
Acquisition synergies are estimated to reach US$75 million per annum by fiscal year 2020. Integration costs are estimated at $ 100 million, accruing predominantly in fiscal year 2016. T
Related: Vaccines
