Novartis sells Kundl site to German Innexis Group

The Deal at a Glance

The transaction involves the 264,000-square-meter "Life Science Campus" with over 100 buildings. Innexis will also be responsible for the site management of the area. According to its own statements, the German operator specializes in "den Pharma- und Biotechnologie-Unternehmen an unseren Standorten den Rücken freizuhalten, indem wir für unsere Kunden das Standortmanagement übernehmen und sie mit spezialisierten Lösungen in den Bereichen Engineering und Logistik unterstützen - so können sie sich auf ihr Kerngeschäft fokussieren."

For the majority of the approximately 850 employees at the Kundl site, nothing will change as a result of the takeover, since Novartis will continue to operate at the campus with its core activities. "Mit seinen Kernaktivitäten bleibt Novartis fest am Standort Kundl verankert," the responsible parties stated. It is planned that 30 employees from campus management will move to the Innexis Unternehmensgruppe with the same duties and responsibilities.

Impact on Employees

Novartis currently employs around 3,300 people in Austria. With this latest step, the company is continuing its strategy of focusing "noch stärker auf die Entwicklung und Produktion innovativer Medikamente zu richten," the Novartis leadership announced. Through this transaction, Novartis Austria can "auf sein Kerngeschäft konzentrieren, insbesondere auf die Forschung, Entwicklung und Herstellung innovativer Arzneimittel," the Innexis representatives stated.

The acquisition of "eines so prosperierenden und traditionsreichen Pharma & Life Science Parks wie in Kundl" is a "Meilenstein" in the Innexis corporate development. "Wir freuen uns sehr, dass Novartis uns das Vertrauen schenkt, den Standort im Sinne der ansässigen Unternehmen, der Mitarbeitenden und der Region zu betreiben und weiterzuentwickeln," said CEO Martin Egger.

Rationale and Strategy

Roland Gander, Managing Director of Campus Kundl/Schaftenau, explained the rationale: "Wir sind zu dem Schluss gekommen, dass die Übertragung des Managements des 'Life Science Campus Kundl' an einen professionellen Industriepark-Betreiber das wirtschaftliche Potenzial des Standorts besser maximieren und weiterentwickeln kann und die Ansiedlung neuer Firmen erleichtert." According to Novartis, the decision made enables the sustainable increase of the economic potential of the Kundl site and the region while specifically promoting the settlement of new companies.

Union Reaction

The Managing Director of the GPA-Tirol trade union, Harald Schweighofer, expressed surprise to the "Tiroler Tageszeitung" (online). He was "erstaunt" about the deal, which had come as "sehr überraschend." The union is observing the development of the approximately 30 transferring employees from campus management particularly closely.

In addition to the over 100 buildings, the infrastructure and services will also be taken over. The transaction is subject to any required approvals from the competent authorities. As a result, the Kundl site will be retained as a pharmaceutical and production site, while the management of the properties and campus operations will be transferred to an external specialist.