Novartis gains majority stake

Pharmaceutical company Novartis has acquired a majority stake in eye care company Alcon after the purchase of the remaining 52 per cent of its shares for $28.3bn.

Novartis now has 77 per cent of Alcon which, it said, would enable it to create greater value for stakeholders through collaboration. This could include opportunities around the potential launch of Lucentis for diabetic macular oedema.

Novartis added that the companies had complementary pharmaceutical portfolios for anterior and posterior eye disease as well as strong global brands in lens care.

Novartis has proposed (News 08.01.10) to acquire the remaining 23 per cent held by minority shareholders. A direct merger of Alcon into Novartis AG is proposed at a ratio of 2.8 Novartis shares for each Alcon share. Alcon is the world's largest eye care company with sales of $6.5bn in 2009.