DRUG FIRMS IN MEGA-MERGER
By Adnews Staff
Two Swiss-based companies are giving the worldwide drug industry a new name to take note of: Novartis. This is what Sandoz AG and Ciba-Geigy Ltd. will call the new company they are forming in a merger announced yesterday. The two have agreed to shed their specialty chemicals divisions and shape a company that they say will be number two (after Glaxo-Wellcome) in global pharmaceutical rankings, with $12,3 billion in annual sales of prescription and over-the-counter drugs. Novartis' business mix will be 59% health care, 27% agribusiness and 14% in the nutrition field. The new partners expect to launch 17 drugs in the next three years. Ciba-Geigy boosted its self-medication sales with the takeover of Rhone-Poulenc Rorer's North American over-the-counter business in 1994. Ciba has also enjoyed strong growth in its Ciba Vision eye care division. Sandoz took a big swallow of baby food with the purchase of Gerber Products Company in 1994. Sandoz and Ciba both have agricultural divisions; they say Novatris will be number one in sales of crop protection products and number two in seeds. In Canada SMW Advertising does pharmaceutical ads for Ciba-Geigy. Sandoz has Pantello & Lally MacFarland of Montreal handling prescription drugs. Marketing Communications of London, Ont. handles Sandoz herbicides, while Adculture Group of Milton, Ont. and BCP Direct in Toronto are the agencies for Ciba's crop protection division. DDB Needham Worldwide in Toronto handles consumer products for Sandoz in Canada. Ciba-Geigy uses National PharmaCom and Durnan Communications, both of Toronto. Ciba Vision officials were unavailable yesterday to say if they have replaced Remtulla + Associates of Toronto, which resigned Ciba Vision's account four months ago.