Altana Pharma sold for 4.5 billion euros

Altana AG has sold its entire pharmaceutical division to Nycomed, a Danish medicines manufacturer, for 4.5 billion euros (three billion pounds).

The move has been described by Altana Pharma as the “most defining” moment in the company’s 29-year history, signalling the break-up of Altana AG into its pharmaceutical and chemical industry components.

Nycomed’s attempt to by Altana Pharma will be put to Altana shareholders at an extraordinary general meeting in December 2006, with the transfer of business planned to take place January 1st, 2007. Additionally, the merger will have to receive approval from both EU and US monopoly regulators.

Dr Nikolaus Schweickart, president and chief executive of Altana AG, said Nycomed was a “strategic match” for the pharmaceutical division, adding that there was a “firm belief” that the new company would be facing “strategic opportunities” for a “successful future.

Dr Hakan Bjorklund, chief executive officer of Nycomed, remarked: “Both Nycomed and Altana Pharma are successful and growing companies with highly complementary businesses.”

Merging the two companies would provide a “leadership position” in Europe as well as the chance to build on market footholds in South America and Russia, he concluded.

In addition to prescription pharmaceuticals, Altana Pharma produces over-the-counter medicines and imaging equipment. The company’s largest-selling is Pantoprazole, the treatment for gastro-oesophageal reflux disease, which is responsible for the majority of Altana Pharma’s prescription drug sales.