Novartis Animal Health enters US farm-animal vaccine market through two acquisitions
Novartis Animal Health today announced that it has acquired Grand Laboratories Inc. and ImmTech Biologics Inc., two US companies specialized in the development, manufacture and marketing of vaccine products for cattle and pigs. The acquisitions provide Novartis with immediate entry into the world’s largest farm animal vaccine market, the US. The two businesses generated combined revenues of USD 33 million in 2001. Financial details were not disclosed.
“These acquisitions are strategically linked by strong synergies,” said Hans-Beat Gurtler, CEO of Novartis’ Animal Health Sector. “Grand Laboratories’ well-established manufacturing, registration and marketing capabilities ideally support and enhance ImmTech’s state-of-the-art research. The two companies have an exciting development portfolio in important disease areas that are not fully covered by vaccines today,” Mr Gurtler added.
Novartis Animal Health has been strategically expanding into the attractive and growing animal vaccine market since 1999, when it bought the British company Vericore. The following year it acquired the Canadian vaccine businesses of Biostar and Cobequid.
Located in Larchwood, Iowa, Grand Laboratories Inc. is one of the largest animal vaccine companies in the US. As a fully integrated business with research, development, manufacturing and marketing capabilities, it offers a broad range of conventional cattle and pig vaccines and has a promising end-stage pipeline to fuel future growth.
ImmTech Biologics Inc. is a small and innovative animal vaccine company situated in Bucyrus, Kansas, and focused on the development of novel products for cattle and pig rearing. The company holds several proprietary technologies and also has a number of new product introductions pending.
The acquisitions include the production sites and research facilities of both companies, as well as all brands of cattle and pig vaccines for respiratory and enteric diseases. Novartis Animal Health intends to maintain the combined current staff of approximately 230.
The foregoing information contains forward-looking statements that can be identified by terminology such as “promising”, “intend” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. In particular, management’s expectations regarding future research and development results, or the performance of the acquired companies, could be affected by, among other things, unexpected regulatory delays or government regulation generally; uncertainties relating product development; the introduction of competitive products; changes in the market for animal-based products; changes in the company’s ability to obtain or maintain patent and other proprietary intellectual property protection and competition in general.
Some of these factors are discussed in the Form 20-F filed by Novartis with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected.
Novartis Animal Health researches, develops and commercializes leading animal treatments that meet the needs of pet owners, farmers and veterinarians. Headquartered in Basel, Switzerland and present in 40 countries, Novartis Animal Health employs approximately 2000 associates worldwide and achieved sales of CHF 1.08 billion in 2000. For more information, please consult www.ah.novartis.com.
Novartis AG (NYSE: NVS) is a world leader in healthcare with core businesses in pharmaceuticals, consumer health, generics, eye-care, and animal health. In 2000, the Novartis Group’s ongoing businesses achieved collective sales of CHF 29.1 billion (USD 17.2 billion) and a net income of CHF 6.5 billion (USD 3.9 billion). The Group invested approximately CHF 4.0 billion (USD 2.4 billion) in R&D. Novartis AG is headquartered in Basel, Switzerland. Novartis Group companies employ about 70 000 people and operate in over 140 countries around the world. For further information please consult http://www.novartis.com.