The scope of the deal includes the acquisition of shares in Aspen Japan and associated assets held by Aspen Global.
As per terms of the deal, Aspen will secure an initial cash consideration of €300m ($330m) from Sandoz on closing.
Aspen will also receive deferred consideration up to €100m, based on the fulfilment of certain condition after closing.
The acquisition of Aspen Global’s business will allow Sandoz to expand its operations in the third-largest worldwide generics marketplace.
The acquired business is also said to compliment the Sandoz’s portfolio and pipeline of hospital generic and biosimilar products.
Aspen’s Japanese portfolio is comprised of off-patent medicines, with a focus on anesthetics and speciality brands.
In Japan, Aspen’s portfolio includes around 20 products, including Xylocaine, Imuran and local brands.
Subject to certain customary conditions, the deal is expected to be completed in the first half of 2020.
Aspen Global has also signed a five-year manufacturing and supply agreement with Sandoz to provide active pharmaceutical ingredients, semi-finished and finished goods related to the portfolio of divested brands. The manufacturing and supply will be effective upon completion of the deal.
Sandoz CEO Richard Saynor said: “The acquisition of Aspen’s Japanese operations would significantly strengthen our position in this country, a stable but growing generics market.
“We are committed to helping address patient and customer needs in the market as we aspire to become the world’s leading and most valued generics company.”
In September 2018, Aurobindo Pharma USA agreed to acquire selected portions of Sandoz US portfolio from Novartis for $900m of cash and $100m of potential earn-outs.
Under the agreement, Aurobindo agreed to purchase Sandoz US dermatology business and generic US oral solids portfolio.
The sale is part of Sandoz’s strategy to focus on complex generics, value-added medicines and biosimilars to attain sustainable and profitable growth in the US.