MELBOURNE, Australia, Oct. 27, 2014 /PRNewswire/ -- CSL Limited (ASX:CSL; USOTC:CSLLY) today announced that it has agreed to acquire Novartis' global influenza vaccine business for US$275 million. The business will be combined with CSL's subsidiary, bioCSL.
Combining bioCSL's existing influenza vaccine operations with the Novartis business will create the number two global player in the US$4 billion global influenza vaccine industry, with manufacturing plants in the US, UK, Germany and Australia, a diversified product portfolio and strong pre-pandemic and pandemic franchises in its major centres of operation. The combined business will have a strong growth profile and is expected to achieve sales approaching US$1 billion per annum over the next 3 to 5 years.
The Novartis influenza vaccine business is one of the largest in the world, with net sales in the 12 months to 31 December 2013 of US$527 million. The business has state-of-the-art manufacturing facilities and a diversified, late stage product pipeline.
CSL Managing Director and Chief Executive Officer, Mr. Paul Perreault, today said, "The Novartis influenza vaccine business provides bioCSL with a global leadership position in an attractive sector we understand intimately. It will transform bioCSL by giving it first class facilities and global scale as well as product and geographic diversity.
"CSL has demonstrated its ability to make the most of specialist pharmaceutical acquisitions in areas we know well and this transaction has the potential to create a global platform for bioCSL that is comparable in many aspects to our global protein science business".
Final settlement of the transaction is expected to occur in the second half of calendar year 2015, subject to regulatory approval.
Acquisition synergies are estimated to reach US$75 million per annum by fiscal year 2020. Integration costs are estimated at $US100 million, accruing predominantly in fiscal year 2016.
The acquisition is expected to be funded through surplus cash and is not expected to impact the share buy-back program announced at the Company's Annual General Meeting in October 2014.
CSL Behring is a leader in the plasma protein therapeutics industry. Committed to saving lives and improving the quality of life for people with rare and serious diseases, the company manufactures and markets a range of plasma-derived and recombinant therapies worldwide. The company operates in nearly 30 countries with approximately 13,000 employees.
CSL Behring therapies are used around the world to treat coagulation disorders including hemophilia and von Willebrand disease, primary immune deficiencies, hereditary angioedema and inherited respiratory disease, and neurological disorders in certain markets. The company's products are also used in cardiac surgery, organ transplantation, burn treatment and to prevent hemolytic diseases in the newborn. CSL Behring operates one of the world's largest plasma collection networks, CSL Plasma. CSL Behring is a global biopharmaceutical company and a member of the CSL Group of companies.
bioCSL is a leading provider of essential vaccines, pharmaceuticals and diagnostic reagents. For over 50 years, bioCSL has manufactured seasonal and pandemic influenza vaccines. It operates one of the world's largest influenza vaccine manufacturing facilities in Australia, and maintains fill and finish facilities in the United States and Germany for the timely, reliable supply of influenza vaccines to global markets. Today, bioCSL's influenza vaccine is registered in 27 countries. bioCSL also specializes in the production of antivenoms and is the world's only producer of Q Fever vaccine. bioCSL is a member of the CSL Group of companies.
Natalie de Vane
Senior Director Communications
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SOURCE CSL Limited