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Sandoz Of Novartis AG (NYSE:NVS) Acquires Antibiotics Of GlaxoSmithKline Plc (NYSE:GSK) For $500 Million

Novartis AG (NYSE:NVS)’s Sandoz entered a deal with GlaxoSmithKline Plc (NYSE:GSK) to acquire the established antibiotic brands like Fortum, Zinacef, and Zinnat for $350 million. GlaxoSmithKline will also receive milestone payments of up to $150 million. The deal will be closed by the end of this year.

Sandoz decided to purchase antibiotics brands after it committed Euro 150 million for expanding its antibiotics production at Kundl based site. It shows the renewed interest of Sandoz in antibiotics at the same time the entire industry is turning its focus on the overlooked category.

GlaxoSmithKline retains rights in some nations

GlaxoSmithKline retained the rights to antibiotics in nations like Egypt, India, Germany, Australia, The US, Pakistan, China, and Japan. The company reported sales of $140 million from drugs in 2020.

Refocus on innovative medicines

GlaxoSmithKline turns its focus again on innovative vaccines and medicines. It maintains antibiotic assets like an experimental drug – gepotidacin and Augmentin. The company is conducting phase 3 clinical study of gepotidacin to cure gonorrhea and urinary tract infections.

The ongoing coronavirus causes biotechnology companies to refocus their interest on infectious diseases. It also reminded the industry to address the issues faced by the antibiotics supply chain. The coronavirus pandemic reminds the biotechnology industry to prepare for the public health crises mainly the danger posed by antibiotic-resistant bacteria.

China is a vital supplier of antibiotics for the entire world. But the cross-border shutdowns imposed to prevent the spread of coronavirus halted the supply of drugs. It reminded the unprepared western world of the urgent need to look out at the importance of antibiotic supply chains.

As a result, a consortium of large companies like Johnson & Johnson, Pfizer, Novartis unveiled an AMR action fund of $1 billion with a target of getting approval for up to four antibiotics by the year 2030. The young talented teams at Pharma companies will work to advance innovative antibiotics using this fund.

The fund is established to maintain the antibiotic pipeline and prevent its collapse and save millions of lives across the world.

Asciminib receives BTD from FDA

Novartis said its investigational treatment asciminib that targets ABL myristoyl pocket received BTD (Breakthrough Therapy Designation) from the US FDA to cure adults suffering from Ph+ CML.

Published by Pamela Garcia

Pamela Garcia is a keen follower of U.S. stock market

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