FRANKFURT, Germany (Reuters) — Swiss drug maker Novartis is ready to sell its animal health subsidiary and has opened its books to companies interested in the business, said sources familiar with the matter.
The deal could be worth more than $4.1 billion, they said.
Bayer is seeking to bolster its position as a diversified life sciences company, while Novartis chief executive officer Joe Jimenez and chair Joerg Reinhardt have said the company is considering options for non-core assets that lack the scale to be-come world leaders.
Suitors, including Bayer and Boehringer of Germany and Eli Lilly of the United States are conducting due diligence assessments of the business, the financial sources said.
Bayer is interested in expanding its animal health business, CEO Marijn Dekkers said, although he declined to comment on whether it was looking at the Novartis assets.
Combining Bayer’s veterinary drug sales of $1.7 billion with Novartis’ $1.1 billion would lift the German company from fifth place to third or fourth in the global animal health market, where former Pfizer subsidiary Zoetis leads the way.
