Novartis has sold its pharmaceutical production site in Hettlingen, Switzerland, to Bernard Fraisse Group effective October 1, 2004. Terms of the deal were not disclosed.

Novartis will contract with Bernard Fraisse Group to manufacture products at the Hettlingen site for at least two years after the transfer of ownership. Products manufactured at this site include gels, ointments and drops such as Voltaren, Dispatim, Viscotears, Genteal and Ultracortenol.

"After reviewing our long-term strategy, we concluded that the Hettlingen facility will better prosper within a group that plans to develop the site in a new direction to optimize its long-term potential," Andreas Rummelt, head of Global Technical Operations, Novartis Pharma AG said adding, "The agreement with Bernard Fraisse Group best serves the interests of Novartis and the Hettlingen employees."

Novartis has maintained strong relations with Bernard Fraisse Group since 2002 when the French company acquired a Novartis production site in Annonay, France. This transaction resulted in a substantial increase in production through orders from third parties and in the retention of most Novartis employees, release from Novartis said.

Of the approximately 140 total staff at Hettlingen, about 25 job reductions are planned by Novartis before the hand-over. Employees affected will be offered outplacement services, severance packages or early retirement as appropriate.

The Ophthalmics business unit reported a 25 per cent increase in first-half 2004 sales, driven by the dynamic performance of the eye disease drug Visudyne. Outsourcing the manufacturing of ophthalmic products will have no impact to the company's growth or strategic plan for Ophthalmics.