Novartis to buy Alcan from Nestle for $39 bn

[praveen]

The race is heating up in the pharma space. Swiss drugmaker Novartis has decided to buy Alcon- an eye care company from its parent firm Nestle for USD 39 billion.



Novartis has made a big move in its international operations. The company has acquired a 25% stake in the world's largest eyecare company Alcon for USD 11 billion. Novartis will also have the option of buying out Alcon completely from Nestle for USD 28 billion more in the next three years. That will see the deal pegged at USD 39 billion.



While Novartis has a peripheral presence in the global eycare segment, Alcon will bring in a high level of specialisation to Novartis' product protfolio. Alcon has a portfolio that ranges from surgical devices to high-end products for glaucoma, eye infections and allergies.



In India, Novartis can benefit from the recently launched products of Alcon as Novartis by itself sells only on a few brands. So, the Indian eyecare market currently pegged at Rs 485 crore is set to see some major product launches