Novartis takes over Alcon

冕宁眼镜

If it is believed that a presence in a certain sector is necessary, then we must be fully committed to really being there?. Daniel Vasella, president of Novartis, has just completed another acquisition. This time it is Alcon which has been in the hands of Nestlé until now. Vasella’s strategy is a kind of double-or-quit. The Basel pharmaceutical group unreservedly aims at sectors it considers to be strategic and has no qualms about leaving those it does not. Over the past two years, Novartis has sold the medical nutrition division and Gerber baby foods to Nestlé. But it has acquired Germany’s general product manufacturers Hexal and Eon Labs, the American company Chiron and now it has taken over Alcon in the ophthalmic sector. Vasella explained: ?Alcon allows us to target two objectives. On the one hand, we can diversify our business around our core business of pharmaceuticals. On the other, we can achieve critical mass in a sector in which we are already present?. Alcon, which has its operational base in Texas, USA, will gradually become part of the Novartis Group. In the second half of this year, Novartis will acquire 25% of the company at a cost of 11 billion US dollars. Options have also been signed, which will be taken up between early 2010 and July 2011, for another 52% with a value of 28 billion. Unless there are any dramatic turns of events, in the end Novartis will hold 77% of Alcon, which is listed at the New York Stock Exchange, for a total of 39 billion dollars (24.5 billion euros). In 2007 Alcon’s billings were 5.6 billion US dollars, with net income of 1.6 billion. The company makes products for ophthalmic surgery, ophthalmic pharmaceuticals and contact lens products. Last year, Novartis’ billings stood at 38.1 billion dollars, it is present in many ethical and general pharmaceutical segments and the vaccines sector. It operates under Ciba Vision in the field of contact lenses and ophthalmic pharmaceuticals. Many analysts asked themselves what would happen to Ciba Vision and assumed that it would be transferred. But in this case Novartis’ top management decided to double its bets. ?Our ophthalmic business and that of Alcon” said Vasella “are complementary, there is no overlapping. It’s a good transaction on a market that is very promising in our opinion. Nestlé has other priorities and has realized it is advantageous to get out. We will create important synergies and we will widen our positions in the sector. It suits us both?. In Zurich the Stock Exchange took the classic route of raising share prices for sellers and dropping them for buyers. Nestlé shares closed at 516 francs (+0.98%) and Novartis shares at 51.5 francs (-1.72%). The price for Alcon is not one of the lowest according to some analysts. But apart from that, on the Swiss market there are positive opinions about the industrial potential that the acquisition will give Novartis. In the meantime, from Siena, the international pole for Novartis vaccines, comes the news that the FDA in the US has given the green light for the exportation to the States of the flu vaccine packaged in Italy. It is the first time that the Novartis base in Tuscany has received the approval of the FDA. ?The pole in Siena” Vasella confirmed “is doing well. We intend to continue to invest in the Italian market, which we consider to be important. Obviously, at the same time we hope that in the future there will be a further reinforcing of the general framework conditions for fostering research and innovation?.