Swiss pharma giant Novartis will sell part of its generic drug business, Sandoz, in a deal valued at $1 billion, reports the Wall Street Journal.
Novartis plans to sell about 300 products, including Sandoz's dermatology business and generic oral solids portfolio, to Aurobindo Pharma for $900 million in cash and up to $100 million based on performance.
The deal is part of its strategy to have Sandoz double down on higher-growth areas, such as more complex generics or biosimilars.
The sale comes at a tough time for generic drugmakers, who have seen lower profits in recent years because the prices of copycat drugs continue to drop.
Novartis expects the sale to close in 2019.