Savoring Sabex: Sandoz' Play in Injectable Generics

Sandoz, the generics unit of Novartis, is buying Sabex, a Canadian maker of injectable generics for $565 million cash, marking its entree into an attractive sector of generics and also the Canadian generics market. The 6X sales multiple aimed to dissuade Sabex owners from shopping for another buyer. Novartis is the only big pharma company to succeed in generics. Its play is opportunistic, but a secondary effect is a free-market response to pressure on big pharma to make drugs more affordable.