Swiss pharmaceutical Novartis acquires US cholesterol drugmaker for $9.7 billion

Swiss company agrees to pay $85 a share for The Medicines Company

Swiss pharmaceutical giant Novartis is to acquire US cholesterol drugmaker, The Medicines Company, for an agreed cash sum of $9.7 billion (£7.5bn, €8.8bn).

Novartis has agreed to pay $85 a share for the company in a deal that is expected to close in the first quarter of next year.

The takeover marks the latest attempt by Vasant Narasimhan, CEO of Novartis, to reshape the pharmaceutical company, which has a market value of $203 billion (£158bn).

The company is already targeting the market with drugs such as the heart-failure treatment Entresto.

Medicines closed down nearly 2 per cent Friday at 68.55 a share. The company, which has a market cap of about $5.4 billion, is up 258 per cent year to date.

This month, The Medicines Company partnered with Boston-based Alnylam Pharmaceuticals and presented the successful results of its cholesterol-lowering drug, which reduced the so called “bad” cholesterol, suffered by millions of Americans, by up to 58 per cent.

What is your sentiment on NVS?

84.26
Bullish
or
Bearish
Vote to see community's results!

The drug is an injection, administered every few months, rather than the current treatment of a statin pill daily.

Novartis, which is headquartered in Basel, said over 50 million patients could not control their high cholesterol with the current standard of care.

The drug, which has yet to be approved, works by silencing a gene and reducing a protein that controls the production of “bad” cholesterol.

Further reading: Pharma companies agree $260m payout over US opioid epidemic

Further reading: Two cannabis based medicines approved for use by the UK's NHS

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image