Alcon reacts to news that Novartis could acquire 77% stake in company
[font=Times New Roman][size=3][color=darkgreen]OSN SuperSite Breaking News 4/8/2008[/color][/size][/font][font=Times New Roman][size=3][color=teal]CHICAGO — Alcon representatives say the company will proceed with "business as usual" after Monday's announcement of an agreement that could pave the way for Alcon to become a majority-owned subsidiary of Novartis.[/color][/size][/font]
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[font=Times New Roman][size=3][color=teal]Under the first step of the deal, which is expected to take effect in the second half of this year, Alcon's parent company Nestlé S.A. will transfer 25% of its outstanding shares to Novartis AG for an estimated $11 billion.[/color][/size][/font]
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[font=Times New Roman][size=3][color=teal]While the news caused a stir here at the American Society of Cataract and Refractive Surgery meeting, Alcon officials say there will be no disruption from the customer's standpoint.[/color][/size][/font]
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[font=Times New Roman][size=3][color=teal]"I would say it's pretty simple from [the doctors'] point of view: It's business as usual," Doug MacHatton, Alcon's vice president of investor relations and strategic communications, told [i]Ocular Surgery News[/i]. "We are going to continue to support them, we're going to continue to service them with the same level of customer service, both from a sales side as well as from a technical service side."[/color][/size][/font]
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[font=Times New Roman][size=3][color=teal]The first phase of the transaction, which hinges on regulatory approvals, provides for Novartis to acquire 74 million shares of Alcon common stock in a cash transaction at $143.18 per share. Nestlé would remain Alcon's majority shareholder, retaining approximately 52% of Alcon's outstanding shares.[/color][/size][/font]
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[font=Times New Roman][size=3][color=teal]In the second phase, Novartis has the right to purchase the remaining stake from Nestlé at a fixed price of $181 per share between Jan. 1, 2010, and July 31, 2011.[/color][/size][/font]
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[font=Times New Roman][size=3][color=teal]"We're going to continue to add value to their practices through new and better products that create better outcomes for patients," Mr. MacHatton said. "That's what we're about ... not only in this first phase, but even in the second phase."[/color][/size][/font]
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[font=Times New Roman][size=3][color=teal]Mr. MacHatton said Novartis' interest represents "validation" of Alcon's position as "a leading surgical business in the world." He also said it speaks to the overall health of the eye care industry as a whole that Novartis — a well-diversified company — would make the acquisition of an ophthalmic company a top priority.[/color][/size][/font]
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[font=Times New Roman][size=3][color=teal]Mr. MacHatton also [u][b]echoed[/b][/u] [color=red][b]（附和）[/b][/color]Novartis' statements that the two companies' portfolios will complement each other.[/color][/size][/font]
[font=Times New Roman][size=3][color=teal]"They do not have any surgical products for the eye, but certainly they have a world-class research function based on developing novel compounds for the treatment of disease," he said. "We believe that the ability they have to identify opportunities and develop them into eye care products ... will ultimately bring value to the eye care industry."[/color][/size][/font]
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