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Biopharma’s 6 Biggest Deals: Were They Worth It?

With Amgen set to drop $10.4 billion on Onyx, investors are wondering how effective super-sized biopharma acquisitions are

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Novartis (Alcon)

Novartis NYSE:NVSThe Novartis (NVS) buyout of Alcon in came with a final price tag of $52 billion — which came in bits and pieces, including a $39 billion chunk in 2010 — and gave the Swiss company control of an outstanding eye-care portfolio. While nothing under the Alcon umbrella was considered to be a budding “blockbuster” that the biopharma industry loves to aim for, it was a solid, reliable business.

The question is, however, was that “outstanding eye-care portfolio” worth the frothy price tag? As it turns out, probably not.

In 2009, Alcon’s sales reached only $6.5 billion, though the company impressively turned $2 billion of that into a profit that year. Alcon’s sales grew to a whopping $10.2 billion last year, but $52 billion is still a lot to pay for those results.

Article printed from InvestorPlace Media,

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