Nestle Sells $11-Billion Stakes In Alcon To Novartis

Geneva, Switzerland (AHN) - Switzerland's second-largest pharmaceuticals company,Novartis, has acquired a 25 percent stake in Nestle's Alcon Inc. for $11 billion, reports said Monday.

According to Bloomberg, Novartis will pay $143.18 a share for Nestle's 25 percent holding, and has an option to buy a further 52 percent from the food company for $28 billion, should it wish to become the world's biggest maker of eye-care products.

The Alcon acquisition would add $5.6 billion in sales and gained for Novartis the Opti-Free contact lens treatment, the Travatan glaucoma medicine and the Infiniti line of cataract surgery products.

Bloomberg added that Novartis needs new sources of revenue to counter the effects of generic competition eating up the sales of its best-selling medicines.

Hunenberg, Switzerland-based Alcon had sales of $5.6 billion last year, operating income of $1.9 billion and net income of $1.6 billion.