Blackstone, Carlyle in talks for joint bid to take over Novartis AG’s generics unit: Report

Representative picture (Image: Reuters)

Private equity firms Blackstone Inc and Carlyle Group Inc are mulling over a partnership to place a joint bid for the takeover of Sandoz, the generics unit of Swedish pharmaceutical company Novartis AG, a report said on February 1, citing sources.

The Bloomberg report, which carried details related to the potential understanding between the two PE firms, learnt from the sources that if the talks are successful, it would be one of the biggest-ever buyout deals.

Blackstone and Carlyle, according to the persons familiar with the development, have been studying the advantages of a joint bid for the Sandoz business, which could attain a valuation of nearly $25 billion.

Among others in fray who could place separate bids for the business are Advent International, Hellman & Friedman and KKR & Co, the sources were reported as saying.

In October 2021, Novartis had raised the prospect of divesting its generic drugs unit Sandoz after years of revamping the business.

"Novartis has commenced a strategic review of the Sandoz Division," the Swiss-based group had said, adding, "The review will explore all options, ranging from retaining the business to separation, in order to determine how to best maximize value for our shareholders."

Novartis had noted that it would have more to say on that review by the end of 2022.

The drugmaker had also said that Sandoz will need to invest in the launch of a raft of "biosimilar" drugs, which are cheaper versions of complex biotech drugs that have lost patent protection.