"The sale of the Novartis blood transfusion diagnostics unit enables us to focus more sharply on our strategic businesses while providing Grifols with a platform for global expansion," said Novartis CEO Joseph Jimenez in a statement.
For the full year 2012, the unit brought in $565 million in net sales, 1% of the Novartis' total $56 billion in revenue. Grifols said the division will account for more than 20% of its company's total sales and plans to ramp up turnover close to $1 billion.
The blood transfusion diagnostics unit, located in Emeryville, California, is committed to developing transfusion medicine and immunology. Barcelona-based Grifols said the unit will complement its production of plasma protein therapies, particularly helpful to patients with rare genetic diseases such as blood-clotting disorders.The transaction, pending regulatory approval, should close in the first half of 2014. Global law firm Proskauer acted as Grifols' legal adviser on the deal, led by New York-based partners Peter Samuels and Daniel Ganitsky. In morning trading, Grifols opened 6% higher to $31.76, while Novartis is up 1% to $78. --Written by Keris Alison Lahiff.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV