Healthcare leader Novartis completed its acquisition of the antiviral products Famvir (famciclovir) and Vectavir/Denavir (penciclovir) from SmithKline Beecham (SB). As previously announced, the acquisition price was USD 1.6 billion (CHF 2.8 billion). Novartis expects the acquisition of these products to have an immediate positive net effect on earnings (earnings accretive).

Under the terms of the agreement, Novartis now has global marketing rights, production rights and all intellectual property rights to both products. All Famvir and Vectavir/Denavir sales will pass to Novartis with immediate effect.

Launched in 1994, the 1999 sales of Famvir grew 26 percent to USD 214 million, of which 70 percent was generated in the US, where the product has patent protection until 2010. Sales of the cream formulation Vectavir/Denavir, which was introduced in 1996, increased 115 percent to USD 20 million in 1999 alone.

Thomas Ebeling, CEO of Novartis Pharma AG commented: "Famvir and Vectavir/Denavir will expand our franchise in the primary care market. Our strong presence with general practitioners, dermatologists, hospital and women's health specialists will drive the growth potential of these new products."

Famvir, a convenient tablet, is prescribed for the treatment of acute herpes zoster (shingles) in more than 70 countries and for the treatment or suppression of genital herpes in more than 50 countries.

Vectavir/Denavir, a non-greasy topical cream formulation of penciclovir, is indicated for treating recurrent cold sores in healthy adults, a condition that affects millions of people worldwide. It is the only prescription medicine approved for this indication by the US Food and Drug Administration.

To ensure availability during the transition, SB will continue to manufacture both products on behalf of Novartis until production has been fully transferred.