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    Delay in FTC approval for Aurobindo Pharma, Sandoz deal raises questions, says report

    Delay in FTC approval for Aurobindo Pharma, Sandoz deal raises questions, says report

    Delay in FTC approval for Aurobindo Pharma, Sandoz deal raises questions, says report
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    By CNBC-TV18  IST (Published)

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    Last year, Aurobindo had announced that it would acquire the commercial operations of Swiss drugmaker Novartis AGs’ generics unit in the US for $900 million.

    A delay in receiving the Federal Trade Commission's approval for Aurobindo Pharma's planned acquisition of Sandoz Inc.’s dermatology business and three manufacturing units raised questions about the deal's uncertainty, reported Mint, citing two people close to the development.
    Last year, Aurobindo had announced that it would acquire the commercial operations of Swiss drugmaker Novartis AGs’ generics unit in the US for $900 million. But, the deal, that was to be the biggest outbound deal by an Indian company is yet to be finalised due to the fact that the FTC is yet to respond.
    The report points out that the two companies have been facing several issues at their respective units. For Aurobindo, USFDA's warning letter for one of its units in Srikakulam district in Andhra Pradesh and a lawsuit by its US distribution partner Aceto seeking damages from Aurobindo on charges of fraud are among the key issues, according to Mint.
    Sandoz, on the other hand, is marred by falling US sales and unstable management, with the company having its third CEO in the last six months, noted Mint.
    Mint said Aurobindo Pharma did not respond to queries, while a Sandoz spokesperson said finalization of the deal is being carried out according to the plan.
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