Novartis To Acquire Alcon

Novartis will acquire majority control of Alcon, Inc., entering an all-share direct merger with Alcon for the remaining the 23% stake it did not previously own. The move completes Novartis’ April 2008 agreement with Nestlé S.A. that led to Novartis taking a 77% in Alcon.

“The addition of Alcon will strategically strengthen our healthcare portfolio and our position in eye care, a sector with dynamic growth due to the increasing patient needs of an aging population,” said Dr. Daniel Vasella, chairman and chief executive officer of Novartis. “This is the right time to simplify Alcon’s ownership to eliminate uncertainties for employees and shareholders. It will also allow us to strengthen innovation power by combining R&D efforts and grow our global market presence thanks to our complementary product portfolios.”

Alcon and Novartis both have eye care businesses that together cover more than 70% of the global vision care sector. Alcon, which is incorporated in Switzerland and has U.S. operations based in Fort Worth, TX, has three business sectors: Surgical including medical devices and ophthalmic surgery products; Pharmaceuticals that includes specialty medicines for various eye diseases; and consumer products consisting of contact lens care, OTC dry eye drops and ocular vitamins.