Novartis to buy France's Advanced Accelerator Applications in $3.9bn deal
Novartis has agreed to buy French radiopharmaceutical group Advanced Accelerator Applications in a $3.9bn deal.
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The Swiss pharmaceuticals company said the transaction would strengthen its oncology presence with both near-term product launches as well as a new technology platform with potential applications across a number of oncology early development programs.
Bruno Strigini, chief executive officer of Novartis Oncology, said: "Novartis has a strong legacy in the development and commercialization of medicines for neuroendocrine tumours where significant unmet need remains for patients. With Lutathera we can build on this legacy by expanding the global reach of this novel, differentiated treatment approach and work to maximise Advanced Accelerator Applications broader RadioLigand therapy pipeline and an exciting technology platform."
Lutathera was approved in Europe in September 2017 for the treatment of gastroenteropancreatic neuroendocrine tumours.
Under the terms of the memorandum of understanding, which has been approved by AAA's board of directors, Novartis will make a cash offer of $41 per ordinary share of AAA and $82 per American Depositary Share, valuing AAA's equity at $3.9bn. Novartis plans to fund the acquisition through external short and long-term debt.
At 0900 BST, Novartis shares were down 0.4% to CHF80.70.