Benzinga | Nov 23, 2021 07:17AM EST

Novartis May Have Buyer(s) For Its Sandoz Unit - Report

According to a German newspaper, Swedish-based investment group EQT and the Struengmann family of Germany are considering a joint move to purchase the Novartis AG's (NYSE:NVS) generics outfit, Sandoz, for $21.6 billion.

* The price would make it the largest pharma deal of the year.

* Related: Novartis Mulls Strategic Options For Sandoz, Reaffirms FY21 Outlook.

* EQT and the Struengmanns, who provided the investment power behind BioNTech SE (NASDAQ:BNTX), have attracted interest from other private equity investors to join the group, the outlet reported.

* Reuters points out that the Struengmann twins have done business with Novartis in the past, selling a generics maker, Hexal, to the company in 2005.

* Similar divestitures have been made by other pharmaceutical giants designed to focus on the business of developing drugs.

* Merck & Co Inc (NYSE:MRK) has created Organon & Co (NYSE:OGN). Pfizer Inc (NYSE:PFE) merged its generics maker, Upjohn, with Mylan, creating Viatris Inc (NASDAQ:VTRS).

* Most recently, Johnson & Johnson (NYSE:JNJ) revealed it was establishing a new publicly-traded company to handle its consumer health business.

* Novartis was nearing the sale of a portion of its generics business to Aurobindo of India for $1 billion before the deal fell through after an antitrust review setback with the U.S. Federal Trade Commission.

* Also See: Novartis Has $21B From Roche Stake Sale - Which Company Is On Its M&A Radar?

* Price Action: NVS shares are up 0.97% at $82.11 during the premarket session on the last check Tuesday.