The acquisition will enable Novartis to use the core commercial capabilities, including global cardiovascular field force of The Medicines Company
Novartis has signed agreement to acquire The Medicines Company (Credit: Novartis AG)
Novartis has signed a definitive agreement and plan of merger to acquire The Medicines Company, a US-based biopharmaceutical firm, in an all-cash transaction.
Under the terms of the agreement, Novartis, through its subsidiary, will start a tender offer to purchase all outstanding shares of The Medicines Company for $85 per share, for a fully diluted equity value of $9.7bn.
Once the tender offer is completed, Novartis would merge the acquiring subsidiary with The Medicines Company, making The Medicines Company an indirect wholly-owned subsidiary of Novartis.
The Medicines Company develops Inclisiran for patients with heart disease
The Medicines Company is a biopharmaceutical firm engaged in developing therapies for cardiovascular diseases. It has recently developed inclisiran, a cholesterol-lowering drug for patients with heart disease.
In the recently unveiled data from Phase III trials of Inclisiran, in more than 3,600 high-risk participants with atherosclerotic cardiovascular disease and familial hypercholesterolemia, showed its potential to reduce low-density lipoprotein cholesterol.
Novartis said that the acquisition would boost its cardiovascular-renal-metabolism franchise, and launch of inclisiran could contribute to its sales from 2021. It will also enable it to use the core commercial capabilities, including global cardiovascular field force of The Medicines Company.
Novartis Pharmaceuticals president Marie-France Tschudin said: “Novartis has a long-standing history of delivering breakthrough cardiovascular treatments for patients, and I am very excited about the opportunity to add inclisiran to our cardiovascular portfolio.
“This transformational, new investigational medicine has the potential to meaningfully address one of the largest areas of underserved patient need. We believe our strong capabilities and global footprint can help drive broad worldwide access to this much-needed treatment.”
Until the transaction is completed, which is expected in the first quarter of 2020, subject to the fulfilment of all closing conditions, both the companies will operate as separate and independent companies.
The transaction is subject to customary closing conditions, including antitrust clearance, and the company intends to finance the transaction through available cash, short-term, and long-term borrowings.
The Medicines Company chief executive officer Mark Timney said: “Our company’s singular, relentless focus and the unwavering commitment of our employees have led to this opportunity to unlock the intrinsic value of inclisiran for patients and to maximise value for our shareholders.
“We are excited that millions of patients with atherosclerotic cardiovascular disease and familial hypercholesterolemia will potentially benefit from this transformational therapy.”