Novartis AG (Novartis), a Swiss-based medicine manufacturing company, is likely to conclude the acquisition of the American biotechnology company, The Medicines Co., for about $ 9.7 billion in the first quarter of 2020.
The acquisition would help Novartis to provide its products and medical treatments to more than 50 million patients with heart diseases.
Expansion of the Treatment of Heart Disease Patients
Novartis has been facing hardships since it lost the patent of its medicine ‘Diovan’ in 2012. The company bought AveXis, a specialist company for gene therapy, in 2018 for $ 8.7 billion to fill the gap created by the loss of Diovan.
Novartis is focused on improving its core technologies, through the acquisition of The Medicines Co., which would provide better treatment for not only the patients of rare but also for cardiovascular diseases.
The Medicines Co. is a major seller of the drug called ‘inclisiran’, a cholesterol-lowering agent for the treatment of heart diseases such as atherosclerotic cardiovascular disease and elevated low-density lipoprotein cholesterol.
Inclisiran will be submitted for regulatory approval in late 2019 in the US. On approval, the drug will be able to help treat heart diseases such as genetic cardiovascular risk factors, rare renal diseases, and metabolic disorders.
This will aid Novartis to increase its footprint in healthcare transformative services, thus increasing future sales of its medicines.
Completion of Acquisition by Novartis
In the light of this acquisition, Novartis chief executive officer, Vas Narasimhan stated,
“We are excited about entering into an agreement to acquire The Medicines Company as inclisiran is a potentially transformational medicine that reimagines the treatment of atherosclerotic heart disease and familial hypercholesterolemia. With tens of millions of patients at higher risk of cardiovascular events from high LDL-C, we believe that inclisiran could contribute significantly to improved patient outcomes and help healthcare systems address the leading global cause of death.”
Novartis plans to enter into an agreement worth $ 9.7 billion to take over nearly 41% of the Medicines Co.’s total share, with each share costing roughly $ 85.
Under agreement policies, Norvartis will offer a tender call for investors to purchase the remaining shares for the same price. Till the agreement is finally concluded, both the companies will be working independently.
I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.
You can reach out to me at: [email protected]