Novartis has signed an agreement to acquire the specialty generic injectables business of Ebewe Pharma for $1.2 billion. The deal covers Ebewe’s injectable oncology unit, but excludes Ebewe’s injectable neurological products business. The unit will be folded into Sandoz, Novartis’ generics division.

Several of Ebewe’s products — including paclitaxel, epirubicin, methotrexate, oxaliplatin, carboplatin, doxorubicin and gemcitabine — are essential components of standard-of-care guidelines for treating many types of cancers.

“The addition of Ebewe Pharma’s leading portfolio of oncology medicines fits our strategy and improves our ability to help cancer patients around the world by providing easier access to therapies. These medicines will remain the backbone of multi-drug treatments in the fight against cancer, one of the world’s leading causes of death,” said Dr. Daniel Vasella, chairman and chief executive officer of Novartis. “Ebewe Pharma will further strengthen our pipeline with many planned near-term launches.”

Since becoming independent in 2001 through a management buyout, Ebewe Pharma has built a strong position in Europe and in many emerging markets, while also establishing a presence in the U.S. The company’s business is growing dynamically, delivering 20% compound annual sales growth since 2006. Net sales for the fiscal year 2008 were $272 million and operating income was $77 million. Ebewe has approximately 500 associates, and has a differentiated development portfolio with more than 20 distinct molecules that include significant near-term launch opportunities, according to a Novartis statement.

“As the world market for generic injectables to treat cancer continues to expand, our specialty generics business will enjoy a much broader global reach as part of Sandoz. We will also be able to offer greater benefits to patients and healthcare providers while creating a more competitive growth platform for our complementary businesses,” said Friedrich Hillebrand, chief executive officer of Ebewe Pharma.

Sandoz will form a new global center of excellence around this business, which will be led by Mr. Hillebrand and will be based in Unterach, Austria. Key priorities for this new unit include capitalizing on Ebewe’s capabilities in hospital marketing and strong customer partnerships, skills in developing differentiated generics and expertise in injectables manufacturing, according to Novartis.