Novartis flu vaccine business bought by CSL

CSL (ASX:CSL) has completed its acquisition of the Novartis global influenza vaccine business for a cash consideration of US$275 million. The closing of the transaction will enable the integration of the influenza vaccines division with CSL’s current subsidiary, bioCSL.

CSL announced the planned acquisition in October 2014 and indicated that it was likely to close the transaction on 31 December 2015, subject to necessary approvals. As these approvals were secured early, CSL and Novartis agreed to expedite the close.

A new subsidiary resulting from the acquisition, to be called Seqirus, is set to become the second-largest influenza vaccine business in the US$4 billion global industry. It will have manufacturing plants in the US, UK, Germany and Australia, as well as a commercial presence in approximately 20 countries. The Seqirus corporate office will be located in Maidenhead, just outside London.

CSL Chief Financial Officer Gordon Naylor will lead the new business, both overseeing the integration planning and continuing to serve as CFO until his successor commences in the role. The management teams of bioCSL and the Novartis influenza vaccines business will remain in place until a new executive leadership team is appointed later this year.

“Gordon has a strong track record in the successful integration and strategic management of complex business operations and global supply chains,” said CSL Managing Director Paul Perreault. “Under his leadership we expect there will be a swift and seamless merger of the two businesses, with Seqirus emerging as a leader in the prevention and treatment of influenza globally.”

The business name Seqirus will take effect in October 2015. Until then, bioCSL will continue to operate under its existing name and Novartis influenza vaccines as ‘NVS Influenza Vaccines’.

CSL (ASX:CSL) shares were trading 1.94% higher at $100.75 as of around 11 am on Tuesday.