Novartis announced today its intention to acquire the brands, trademarks, patents and intellectual property assets of Mead Johnson & Company’s global adult medical nutrition business for $385 million cash.
According to a statement, successful completion of the transaction will offer Novartis Medical Nutrition a strong presence in the fast-growing US retail sector for medical nutrition products, expand its existing institutional medical nutrition business and enhance its access to the Japanese market.
‘The acquisition of Mead Johnson & Company’s adult medical nutrition business re-confirms our commitment to delivering high-quality products that help people maintain good health’ said Michel Gardet, Global Head of Novartis Medical Nutrition. ‘Enhancing our medical nutrition portfolio will allow us to better serve the needs of the growing outpatient and ageing populations.’
The percentage of the US population over 65 is expected to grow from 17% to 25% between 2005 and 2020.
Headquartered in Evansville, Indiana, USA, Mead Johnson & Company, a subsidiary of Bristol-Myers Squibb, will continue to manufacture and supply the majority of the acquired products for Novartis on an ongoing basis. Sales of the acquired products exceeded $220 million in 2002.