Dorval, Quebec - (March 19, 2001) - Novartis Pharmaceuticals Canada Inc. (Novartis) announced that it has taken a key step in its business strategy today with its decision to enter into a long-term supply pharmaceutical manufacturing agreement with Patheon Inc. (Patheon), which includes the sale of Novartis' Whitby manufacturing facility to Patheon.
Under the terms of the agreement, Patheon will continue to manufacture products for Novartis and will retain almost all of the employees at the Whitby facility. The completion of the agreement is pending the successful conclusion of due diligence and regulatory approvals. The transaction is expected to close by the end of April 2001.
"Our agreement with Patheon allows Novartis to focus on the core needs of the Canadian market, which include the research and development and sales and marketing of pharmaceuticals," said Ian T. Clark, President, Novartis. "In addition, the agreement will allow Novartis to continue to access the skills and expertise of the Whitby facility through our supply arrangements."
In 2000, Novartis invested more than $33 million in research and development across Canada, involving thousands of patients, researchers and investigators. Novartis' Canadian research studies focused on seeking new treatments for cardiovascular diseases, diabetes, irritable bowel syndrome, schizophrenia, organ transplantation, allergies, bone diseases and different types of cancer.
"We have worked diligently with Novartis to ensure that the potential of the Whitby facility and its employees will be maximized for the future," said Robert C. Tedford, Chief Executive Officer, Patheon. "As a global leader in drug manufacturing and development, we look forward to integrating the unique skill set and capabilities of Whitby into the Patheon family -- we also look forward to deepening our relationship with Novartis, one of the world's foremost pharmaceutical companies."
About Novartis
Novartis (NYSE: NVS) is a world leader in healthcare with core businesses in pharmaceuticals, consumer health, generics, eye-care, and animal health. In 2000, the Group's ongoing businesses achieved sales of $25.5 billion and invested approximately $3.5 billion in R&D. Headquartered in Basel, Switzerland, Novartis employs about 67,600 people and operates in over 140 countries around the world.
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