Nov. 4, 2009 (Hugin AS) -- Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
----------------------------------------------------------------------
--------------
* Tianyuan a privately-held vaccines company providing a
competitive product portfolio and pipeline in China, where
Novartis (NYSE:NVS) has a limited vaccines presence
* Tianyuan and Novartis to collaborate on building a vaccines
industry leader targeting unmet medical needs in China, the
world's third-largest vaccines market
* Acquisition of 85% stake in Tianyuan for approximately USD 125
million will require Chinese regulatory and government approvals
Basel, November 4, 2009 - Novartis has reached an agreement to
acquire an 85% stake in the Chinese vaccines company Zhejiang
Tianyuan Bio-Pharmaceutical Co., Ltd. as part of a strategic
initiative to build a vaccines industry leader in this country and
expand the Group's limited presence in this fast-growing market
segment. This proposed acquisition will require government and
regulatory approvals in China.
Tianyuan is a privately-owned vaccine company offering a range of
marketed vaccine products in China and R&D projects focused on
various preventable viral and bacterial diseases. Tianyuan has been
delivering dynamic and profitable growth, having more than doubled
its net sales to approximately USD 25 million in 2008 compared to
2006.
"Novartis has a long-standing commitment to improving healthcare in
China. Our future activities with Tianyuan are an important step in
our strategy to enhance the prevention of diseases in China with
high-quality products," said Dr. Daniel Vasella, Chairman and CEO of
Novartis. "The leadership and associates of Tianyuan share with
Novartis the same ambition of offering a broad range of vaccines that
can prevent many potentially deadly diseases and greatly improve
quality of life."
As part of the collaboration, the two companies will work together to
expand Tianyuan's product portfolio and R&D pipeline through targeted
investments in vaccines innovation, manufacturing technologies and
commercial networks. This collaboration is also expected to
facilitate the introduction of Novartis vaccines into China, where
Novartis currently has a limited presence with an offering of
vaccines against influenza and rabies.
"Our mission is 'To build the Great Wall of Health for the people.' I
personally look forward to working with Novartis to continue our
mission by bringing more innovative vaccines to China and building
Tianyuan into a true international vaccines company," said Mr.
