Novartis AG (ADR) (NYSE:NVS) is looking to sell its Dermatology business and it has tasked Centerview Partners LLC with aiding in the review process to determine the most viable option.
The biopharma has hired Centerview to help it determine the way forward for the dermatology business. Novartis recently revealed that it was considering a sale of the dermatology business which is currently valued at more than $1 billion. However, it looks like the company has not yet made the final decision pertaining the future of the business. Centerview’s role will be to help the biopharma to determine the most viable option that will favor positive performance in line with facilitating the future of the company.
“Advanced Accelerator Applications (AAA), is likely to pave the way for a sale of the group’s dermatology drugs, which could fetch up to $1.5 billion,” the sources stated.
Novartis has hired Centerview after announcing its $3.9 billion acquisition of French pharmaceutical company, Advanced Accelerator Applications (AAA). Sources claim that the recent acquisition highlights the biopharma’s acquisition of the French firm could indicate that the company has plans to sell the dermatology unit. This is in line with the company’s plan to focus on its strong areas while shedding those that do not align with future growth.
The dermatology business which is known as Sandoz is currently the biggest generics dermatology portfolio especially in terms of sales. Additionally, it has been a well-established business considering that it has been for 131 years. Unfortunately, the generics dermatology business had to close a manufacturing facility located in Colorado and also drop some of its drugs. This was due to the mounting price pressure in the U.S.
The dermatology business is expected to attract the attention of many private investors if the biopharma decides to sell the unit. Centerview is also expected to help identify the best candidate to sell to if Novartis decides to divest the business. The company turned down any requests for comments regarding the matter.
Novartis stock closed the latest trading session on Friday at $83.70 after a 1.11 percent gain compared to the value of the stock during the previous close.