Novartis Said To Acquire Amneal Pharmaceuticals

Recent news articles indicate that Swiss health-care company Novartis AG is deliberating privately with Amneal Pharmaceuticals, a U.S. maker of generic drugs, to acquire Amneal. According to an article at Bloomberg, if Amneal were to sell it could be valued at as much as $8 billion.

While individuals familiar with the possible acquisition asked not to be identified because talks are private at the current time, they believe an agreement by the two companies may be reached soon. It was also mentioned that Novartis AG is looking to bolster its Sandoz business.

Founded 14 years ago in 2002, Amneal Pharmaceuticals manufactures both gabapentin for pain and epilepsy, and acyclovir, an antiviral drug developed to treat herpes outbreaks. While representatives for both companies declined to comment, it is reported that negotiations continue and that Amneal is exploring options with the help of an adviser.

Joerg Reinhardt, chairman of Novartis, suggested in an interview that Alcon’s days under the direction of Novartis may be numbered. Alcon is the ophthalmology unit, and according to Reinhardt, it has not developed as anticipated over the last couple of years. Acquiring Amneal could be a huge boost for Novartis and Sandoz at a time when top rivals are sewing up their own acquisitions, including Mylan and Teva Pharmaceutical.

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