Swiss drugmaker Novartis bought privately held U.S. company Oriel Therapeutics to boost its generics portfolio, targeting the multi-billion market for drugs against respiratory diseases.

According to industry estimates approximately 50% of the current $32 billion global market segment for asthma and chronic obstructive pulmonary disease (COPD) medicines is expected to lose patent protection by the end of 2016, Novartis' generics unit Sandoz said in a statement. The segment is projected to grow significantly faster than the pharmaceutical market, driven by factors including a significant level of under-diagnosis, it said.

Sandoz had signed a definitive agreement to buy Oriel Therapeutics, which focuses on developing respiratory products as generic alternatives to patented drugs for asthma and other respiratory diseases, the Swiss group said, without providing financial details of the deal.

"Oriel is a strong strategic fit with Sandoz and the acquisition is expected to support our strategy of increasing the number of differentiated, higher-value products in our development pipeline," said Jeff George, Division Head Sandoz, in a statement. "One of our strategic objectives is to offer fully substitutable generic versions of key branded medicines, including respiratory medicines," he said.

The acquisition provides Sandoz with three promising development projects targeting leading medicines in this field. Details of Oriel's development programs, including anticipated timing of future regulatory submissions, are not disclosed for competitive reasons, the Swiss group said.