Sandoz has entered into an agreement to acquire the Japanese business of Aspen Global Incorporated (AGI), a wholly owned subsidiary of Aspen Pharmacare Holdings Ltd. The acquisition consists of shares in Aspen Japan K.K. and associated assets held by AGI. Under the agreement, Sandoz will pay an initial cash consideration of €300 million, and a certain deferred consideration of up to €100 million.

The acquisition expands Sandoz presence in the third largest worldwide generics market and complements its portfolio and pipeline of hospital generic and biosimilar products. The transaction, subject to customary conditions, is expected to occur in 1H20.

Aspen’s portfolio in Japan consists of off-patent medicines with a focus on anesthetics and specialty brands. Additionally, AGI has entered into a five-year manufacturing and supply agreement (with an additional two-year extension option) with Sandoz, which will take effect from completion of the transaction, for the supply of active pharmaceutical ingredients, semi-finished and finished goods related to the portfolio of divested brands.

“The acquisition of Aspen’s Japanese operations would significantly strengthen our position in this country, a stable but growing generics market. We are committed to helping address patient and customer needs in the market as we aspire to become the world’s leading and most valued generics company,” said Sandoz chief executive officer Richard Saynor.