Alcon acquisition makes Novartis eyecare leader

Novartis has finalised its takeover of Alcon that will make it the world’s number one company in ophthalmology.

Alcon is the world’s largest and most profitable pharmaceutical ophthalmology company with 2009 annual sales hitting $6.5 billion.

Novartis purchased the last 52% of shares from Alcon’s previous owner Nestle for $28.3 billion.

This gives the pharma firm the 77% of shares it needed to gain majority ownership, with the complete deal coming in at $38.7 billion. Novartis and Nestle entered into an agreement in April 2008 for the sale of Nestle’s 77% majority stake in Alcon to Novartis in two steps.

In July 2008 Novartis acquired in the first step a 25% stake in Alcon for $10.4 billion and the second step has come with the remaining 52% purchase.

Novartis will purchase the remaining 23% shares held by minority shareholders in order to gain full ownership.

Joseph Jimenez, chief executive of Novartis, said: “We are delighted to become majority owners of Alcon. Together, both companies can achieve their strategic priorities to deliver against patient needs through innovative and differentiated product.”

Kevin Buehler, president and chief executive of Alcon, said: “I believe that Alcon will benefit from having a majority owner that is a global leader in healthcare.

“With this change, Alcon and Novartis can seek out opportunities to create greater value through arm’s-length agreements that leverage our combined strengths and capabilities.”

The global eye care sector has become a growing element within the health services’ industry given the increase in an ageing population and an unmet need in visual care.

Novartis aims to work with Alcon on a number of collaborations including the launch of Novartis’s Lucentis for the eye condition diabetic macular edema.

It has not been a smooth transition, with the Alcon directors protesting against the takeover back in January.

Ben Adams