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  * Acquisition of EBEWE Pharma provides strong platform for future
    growth of differentiated generics business

  * New global center of excellence for injectable cancer medicines
    broadens portfolio of affordable medicines for patients

  * Sandoz to focus on quick and seamless integration for customers
    and employees


Holzkirchen, September 24, 2009 - Sandoz announced today that it has
completed its USD 1.3 billion acquisition of EBEWE Pharma's specialty
generic injectables business, paving the way for the creation of a
global center of excellence in generic oncology injectables.

"We are delighted to combine EBEWE Pharma's portfolio and pipeline of
high-quality injectables with our global leadership in
biopharmaceuticals, anti-infectives and other innovative
technologies," said Sandoz CEO Jeff George. "This will greatly
enhance the range of affordable generic anti-cancer medicines Sandoz
offers to patients worldwide."

In addition to globalizing Austrian-based EBEWE's operations through
its integration within Sandoz, the world's second largest generics
company, the transaction offers Sandoz a complementary portfolio of
differentiated generics, with more than 15 marketed products and a
strong pipeline with several near-term launches.

Sandoz and EBEWE Pharma will now focus on implementing their joint
integration plans to deliver a smooth transition for all
stakeholders. A new global business unit and center of excellence is
being created to improve customer service worldwide. The new unit
will be based in Unterach, Austria and led by former EBEWE Pharma CEO
Friedrich Hillebrand, who will join the Sandoz Executive Committee.

Key priorities for the integration include capitalizing on EBEWE
Pharma's deep hospital marketing capabilities, strong customer
partnerships, skills in developing differentiated generics, and
expertise in injectables manufacturing. The majority of integration
activities are expected to be completed shortly.

Annual sales of the global generic injectables sector were USD 10-12
billion in 2008, according to IMS Health, with injectable oncology
medicines accounting for about 30%. Additionally, injectable oncology
medicines with a total of USD 9 billion in annual sales are expected
to lose patent protection by 2015.

Disclaimer
This release contains certain forward-looking statements that can  be
identified by terminology such as  "platform for future growth,"  "to
focus on,"  "paving  the  way for,"  "pipeline,"  "will,"  "planned,"
"expected,"  or  similar  expressions,  or  by  express  or   implied
discussions regarding the potential impact on Novartis and its Sandoz
Division of  the  EBEWE  acquisition, including  express  or  implied
discussions regarding  potential  future  sales or  earnings  of  the
Novartis Group or  its Sandoz Division  and any potential  synergies,
strategic benefits or opportunities as  a result of the  acquisition.
You should  not  place  undue  reliance  on  these  statements.  Such
forward-looking statements  reflect the  current views  of the  Group
regarding  future  events,  and  involve  known  and  unknown  risks,
uncertainties and other factors that  may cause actual results to  be
materially  different  from  any   future  results,  performance   or
achievements expressed or implied by such statements. There can be no
guarantee that  Novartis or  its Sandoz  Division, will  achieve  any
particular future financial  results or future  growth rates or  that
Novartis or Sandoz will be  able to realize any potential  synergies,
strategic  benefits  or  opportunities  as  a  result  of  the  EBEWE
acquisition. Neither can there be any guarantees with respect to  the
impact of the  proposed acquisition  on Novartis'  credit rating.  In
particular, management's  expectations could  be affected  by,  among
other things,  uncertainties  involved  in  the  development  of  new
generic  pharmaceutical   products;  unexpected   patent   litigation
outcomes; unexpected inabilities  to obtain  or maintain  exclusivity
periods for  developed  products; unexpected  regulatory  actions  or
delays  or  government  regulation  generally;  Sandoz'  ability   to
successfully merge  the  two  companies  and  retain  key  personnel;
competition in  general;  government, industry,  and  general  public
pricing and other political pressures; the impact that the  foregoing
factors could have on the values attributed to the Group's assets and
liabilities as recorded  in the Group's  consolidated balance  sheet;
and other risks and factors referred to in Novartis AG's current Form
20-F on file with the  US Securities and Exchange Commission.  Should
one or more of  these risks or  uncertainties materialize, or  should
underlying assumptions  prove  incorrect,  actual  results  may  vary
materially from  those  described herein  as  anticipated,  believed,
estimated or expected. Novartis is providing the information in these
materials as of this  date and does not  undertake any obligation  to
update any forward-looking statements as a result of new information,
future events or otherwise.


                                # # #


About Sandoz

Sandoz, a Division of the Novartis  group, is a global leader in  the
field  of  generic   pharmaceuticals,  offering  a   wide  array   of
high-quality, affordable  products that  are no  longer protected  by
patents. Sandoz has a portfolio  of approximately 1000 compounds  and
sells its products  in more  than 130 countries.  Key product  groups
include antibiotics, treatments for central nervous system disorders,
gastrointestinal medicines,  cardiovascular  treatments  and  hormone
therapies. Sandoz  develops,  produces and  markets  these  medicines
along with pharmaceutical and biotechnological active substances  and
anti-infectives. In  addition  to  strong organic  growth  in  recent
years, Sandoz  has  made  a  series  of  acquisitions  including  Lek
(Slovenia), Sabex (Canada),  Hexal (Germany)  and Eon  Labs (US).  In
2008, Sandoz employed around 23,000 people worldwide and posted sales
of USD 7.6 billion.


                                # # #


For further information
Central media line: +41 61 324 2200

Eric Althoff                             Chris Lewis
Novartis Global Media Relations          Sandoz Global Communications
                                         +49 8024 476 2550
+41 61 324 7999                          chris.lewis@sandoz.com
eric.althoff@novartis.com



Novartis Investor Relations

International:                        North America:
Ruth Metzler-Arnold                   Richard Jarvis +1 212 830 2433
Pierre-Michel Bringer                 Jill Pozarek +1 212 830 2445
John Gilardi                          Edwin Valeriano +1 212 830 2456
Thomas Hungerbuehler                  E-mail:
Isabella Zinck                        investor.relations@novartis.com
Central phone no: +41 61 324
7944
E-mail:
investor.relations@novartis.com


 
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