Healthcare Industry News: S.A.
News Release - July 8, 2008
Novartis completes acquisition of 25% stake in Alcon from Nestlé, first step toward majority ownership of the world leader in eye care
* Strong strategic fit with Novartis thanks to Alcon's pharmaceutical, surgical and consumer eye care products businessesBASEL, SWITZERLAND--(Healthcare Sales & Marketing Network)--Jul 8, 2008 - Novartis haS.A.quired a 25% S.A.e in Alcon Inc. (NYSE:ACL ) as part of a definitive agreement with Nestlé S.A. reached in April 2008 that provides the right to acquire majority ownership of the world leader in eye care in two steps.
The first step was completed on July 7 when Novartis purchased the Alcon S.A.e from Nestlé for approximately USD 10.4 billion in cash. This purchase price waS.A.proximately USD 200 million less than previously announced to account for the Alcon dividend paid in May 2008 for these S.A.es to Nestlé rather than Novartis.
The optional second step provides rights for Novartis to acquire, and Nestlé to sell, the remaining 52% S.A.e held by Nestlé between January 2010 and July 2011 for a price not exceeding approximately USD 28 billion.
Completion of the optional second step would make Alcon a majority-owned subsidiary of Novartis, strengthening a portfolio focused on growth areas of healthcare. This portfolio include innovative medicines, generic pharmaceuticals, preventive vaccines, diagnosticS.A.d consumer health products.
Alcon is the world's largest and most profitable eye care company with 2007 annual sales of USD 5.6 billion, operating income of USD 1.9 billion and net income of USD 1.6 billion. Alcon offerS.A.range of pharmaceutical, surgical and consumer eye care products used to treat diS.A.es, disorderS.A.d other conditions of the eye.
Disclaimer
This release contains forward-looking S.A.ements relating to the acquisition by Novartis of a minority S.A.e in Alcon Inc., the proposed acquisition by Novartis of a majority S.A.e in Alcon and to the Novartis' and Alcon's respective businesses. Such forward-looking S.A.ementS.A.e not historical factS.A.d can generally be identified by the use of forward-looking terminology such as "would", "strengthen", or similar expressions, or by express or implied discussions regarding potential future sales or earnings of Novartis or Alcon; or by discussions of strategy, plans, expectations or intentions or potential synergies, strategic benefits or opportunities that may result from the minority S.A.e acquisition or the proposed majority S.A.e acquisition. Such forward-looking S.A.ements reflect the current plans, expectations, objectives, intentions or views of Novartis with respect to future eventS.A.d involve known and unknown risks, uncertaintieS.A.d other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such S.A.ements. In particular, there can be no guarantee that the proposed majority S.A.e acquisition will be completed in the expected form or within the expected time frame or at all. Nor can there be any guarantee that Novartis or Alcon, or any of their divisions or business units, will achieve any particular future financial results or future growth rates or that NovartiS.A.d Alcon will be able to realize any of the potential synergies, strategic benefits or opportunitieS.A. a result of the minority S.A.e acquisition or the proposed majority S.A.e acquisition. Among other things, Novartis' expectations could be affected by unexpected regulatory actions or delays or government regulation generally as well as other riskS.A.d factors referred to in NovartiS.A.'S.A.d Alcon Inc.'s current Forms 20-F on file with the U.S.SecuritieS.A.d Exchange Commission. Novartis is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking S.A.ementS.A. a result of new information, future events or otherwise.
About Novartis
Novartis provides healthcare solutions that address the evolving needs of patientS.A.d societies. Focused on growth areas in healthcare, Novartis offerS.A.diversified portfolio to best meet these needs: innovative medicines, cost-saving generic pharmaceuticals, preventive vaccineS.A.d diagnostic tools, and consumer health products. Novartis is the only company with leading positions in these areas. In 2007, the Group's continuing operations (excluding divestments in 2007) achieved net sales of USD 38.1 billion and net income of USD 6.5 billion. Approximately USD 6.4 billion was invested in R&D activities throughout the Group. Headquartered in Basel, Switzerland, Novartis Group companies employ approximately 98,200 full-time associateS.A.d operate in over 140 countrieS.A.ound the world. For more information, please visit http://www.novartis.com.
Source: Novartis
Issuer of this News Release is solely responsible for its
content.
Please address inquiries directly to the issuing company.
FindReps: Screen and connect with Medical Sales Rep candidates (Direct Reps and Independents) – anonymously, in real time.
RepJobs: Job Opportunities for Direct Sales Reps and New Product Lines for Independents!