Novartis to take over US drug firm

BASEL – The Swiss pharmaceuticals group Novartis said yesterday that it had reached an agreement to complete a takeover of the US biotechnology firm Chiron, one of the world’s largest producers of influenza vaccines.

Novartis said in a statement that it had concluded a deal with Chiron to acquire all the remaining shares in the US company for US$5,1 billion (N$34,2 billion). In September, Chiron had rejected a US$4,5-billion bid from Novartis for the 58-per cent stake that the Swiss giant did not yet own.However, the Swiss group announced on Monday that Chiron’s board of directors had approved the merger and recommended that shareholders take up the offer.”Novartis announced today that it has entered into a definitive merger agreement with Chiron Corporation to acquire all of the remaining publicly held shares of Chiron it does not currently own,” the statement said.It was the second big acquisition this year by Novartis following the 5,65-billion-euro takeover of German-US generic drugs make Hexal and Eon announced in February.In July, the Swiss giant also bought the rights to a batch of over-the counter products from US rival Bristol-Myers Squibb for US$660 million.”Our plan is to turn around the Chiron vaccines business, which will require investments in research and development, and manufacturing, to increase quality and capacity, so that we can better meet customer demand and address public health needs,” Novartis chairman and chief executive Daniel Vasella said.Chiron is rated as the world’s fifth-biggest maker of vaccines.-Nampa-AFPIn September, Chiron had rejected a US$4,5-billion bid from Novartis for the 58-per cent stake that the Swiss giant did not yet own.However, the Swiss group announced on Monday that Chiron’s board of directors had approved the merger and recommended that shareholders take up the offer.”Novartis announced today that it has entered into a definitive merger agreement with Chiron Corporation to acquire all of the remaining publicly held shares of Chiron it does not currently own,” the statement said.It was the second big acquisition this year by Novartis following the 5,65-billion-euro takeover of German-US generic drugs make Hexal and Eon announced in February.In July, the Swiss giant also bought the rights to a batch of over-the counter products from US rival Bristol-Myers Squibb for US$660 million.”Our plan is to turn around the Chiron vaccines business, which will require investments in research and development, and manufacturing, to increase quality and capacity, so that we can better meet customer demand and address public health needs,” Novartis chairman and chief executive Daniel Vasella said.Chiron is rated as the world’s fifth-biggest maker of vaccines.-Nampa-AFP