Novartis sells blood transfusion diagnostics unit to Grifols

Novartis has agreed a deal to sell off its blood transfusion diagnostics unit to Grifols for $1.68 billion (1.06 billion pounds).

This transaction is expected to be completed in the first half of 2014 and will further enhance the company's focus on strategic business operations, while transferring the divested company into the ownership of the world's third-largest producer of plasma-derived therapies.

Originally acquired in 2006 as part of Chiron, the blood transfusion diagnostics unit is currently part of Novartis Vaccines and Diagnostics and generated sales of around $565 million in 2012.

It is dedicated to increasing transfusion safety worldwide with nucleic acid testing, blood testing products and immunoassay reagents that detect infectious disease.

Joseph Jimenez, the chief executive officer of Novartis, said: "The sale of the Novartis blood transfusion diagnostics unit enables us to focus more sharply on our strategic businesses while providing Grifols with a platform for global expansion."

During the third quarter of 2013, the company generated $14.3 billion in net sales, up by four percent year on year.