EBEWE Pharma Ges.m.b.H. Nfg.KG, a Novartis Group company, has reached an agreement with Fareva SA to transfer ownership of its production site in Unterach, Upper Austria. Fareva, a leading contract service provider in the pharmaceutical sector, will acquire the site, which is recognized as a competence center for the production of injectable cancer drugs. Both parties signed the contract today.
Fareva S.A., the future owner, is a global pharmaceutical contract developer and manufacturer (CDMO) of pharmaceuticals, cosmetics, household and industrial cleaning products, food supplements, and other products.
In the cosmetics sector, Fareva is one of the world's largest contract manufacturers and the market leader in Europe. Its clients include Chanel, Lancôme, Cartier, Dior, Yves Saint Laurent, Hugo Boss, Azzaro, Bulgari, Amway, and others. Fareva employs 12,000 people worldwide.
With the acquisition of the Unterach site, Fareva will further strengthen its presence in the European market, particularly in the production of ready-to-inject pharmaceuticals. The site will continue to produce for the Novartis Group, with a supply agreement included in the contract.
The transaction is expected to be completed in the first quarter of 2021, pending antitrust authority approval. The plant, which employs 400 people, will continue to produce for Novartis post-sale, as stipulated in the agreement.
Novartis AG, based in Basel, is a leading biotechnology and pharmaceutical company. Formed in 1996 from the merger of Basel-based pharmaceutical and chemical companies Ciba-Geigy and Sandoz, Novartis is one of the world's largest pharmaceutical companies, with sales of nearly USD 50 billion in 2019. Key growth products include Cosentyx (secukinumab), Entresto (sacubitril), and Zolgensma (onasemnogene abeparvovec-xioi).
Novartis plans to retain its Kundl site (Kufstein district) and modernize the Novartis generics division Sandoz plant with an investment of over EUR 150 million over the next few years. To prevent production relocation to Asia, the public sector, including the government and the EU, intends to support Novartis with subsidies amounting to EUR 50 million.
In close cooperation with the new operator, Novartis will continue to focus on improving patient access to high-quality, affordable medicines, such as those currently produced at the Unterach site.
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