Novartis completes Alcon acquisition

Novartis has completed its acquisition of a 25 per cent stake in Alcon from Nestle, a move it describes as its first step towards majority ownership of the eye care firm.

It follows a definitive agreement between the firms reached in April 2008 that provided Novartis with the right to acquire majority ownership of the company in two steps.

Novartis purchased the stake in Alcon for approximately $10.4 billion (5.3 billion pounds) in cash, $200 million less than previously announced to account for the Alcon dividend paid in May 2008.

The company said Alcon has a strong strategic fit with Novartis as a result of its pharmaceutical, surgical and consumer eye care products business.

“The optional second step provides rights for Novartis to acquire, and Nestlé to sell, the remaining 52 per cent stake held by Nestlé between January 2010 and July 2011 for a price not exceeding approximately $28 billion,” Novartis said.

It added that if this second step is carried out, Alcon would become a majority-owned subsidiary of Novartis and strengthen its product portfolio in a number of areas, including generic pharmaceuticals, preventative vaccines, novel medication, diagnostics and consumer health.

Last month, Novartis announced the establishment of a five-year partnership with the Global Alliance for TB Drug Development.