Date: Aug 28, 2013 Author: Pranali Shah Source: India Dealscape (
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Chiron, a subsidiary of Swiss drug maker Novartis has snapped the eight-year old JV formed with Delhi-based Panacea Biotec to develop and market paediatric vaccines, ET states. The partnership is called off as Novartis plans to go it alone in this business.
Novartis wants to own the entire vaccine business and helm it on its own. Chiron Panacea Vaccines Pvt Ltd, the 50:50 JV which was formed in 2004, focuses on selling the pentavalent vaccines used in the immunisation of kids. Both the companies had planned to invest $100 Mn into the JV.
In 2010, Novartis acquired Chiron from its other JV partner, Aventis consolidating its ownership in the company. Aventis exited the JV by selling its 49% stake for $22.399 Mn.
Panacea is into research based pharmaceutical and health management involved in research, manufacturing and marketing of pharma formulations, vaccines and natural products.
The company had bought 76% stake from Umkal Hospital in 2011 and the project is a 225-bed multi-super specialty hospital in DLF Phase III in Gurgaon.
It is still recovering from a ban imposed by the WHO and is solely dependent on vaccine sales, may have to find another partner to push its business.
Headquartered in Basel, Switzerland, Novartis is a world leader in the research and development of products to protect and improve health and well-being. The Group is present in India through Novartis India Limited, listed on the Mumbai Stock Exchange and its wholly owned subsidiaries Novartis Healthcare Private Limited, Sandoz Private Limited and Chiron Behring Vaccines Private Limited.
In July, US major Novartis along with European pharma giant Sanofi and GSK were also engaged in discussions with the Elder Pharma management for an acquisition.