novartis acquires the medicines co., a us biotechnology company, for $9.7 billion

Novartis Acquires the Medicines Co., a US biotechnology company, for $9.7 billion

Business

The Swiss pharmaceutical company said on Sunday that Novartis would acquire the US biotech company The Medicines Co (MDCO.O) at a price of $9.7 billion to seek to expand its portfolio of anti-cardiovascular drugs.

The deal is expected to help support the growth of companies threatened by patent expiration. Novartis will acquire cash for $85 per share, which is about 24% higher than the closing price of $68.55 on November 22. The company said that the contract has been passed by the board of directors of both organizations and will be financed through obtainable cash and short-term and long-term borrowing.

The drug candidate for The Medicines Co., based in New Jersey, is the cholesterol level lowering drug inclisiran for heart disease patients, which can supplement Novartis’s growing business with its heart failure drug Entresto, which has been slow to begin. The threshold of $1 billion. Novartis said it expects inclisiran to be completed in the first quarter of 2020 and will start to contribute to sales in 2021 and has the potential to be one of the largest in its sales. The deal indicates that Novartis is not only willing to expend billions of dollars on the treatment of rare diseases, as it did in year 2018 when it spent 8.7 billion dollars to acquire gene therapy specialist AveXis and is willing to use it to help potential numbers. Cardiovascular treatment for millions of patients. Novartis has always had a robust cardiovascular drug franchise, but when Diovan used to be a $6 billion seller, but lost its patent protection in 2012 and left the company without immediate, innovative follow-up products, Novartis but lost the market.

The deal is in line with Novartis CEO Vas Narasimhan’s goal of adding up to $10 billion in mergers and acquisitions to strengthen the group’s pharmaceutical portfolio with new products or technologies. Novartis also said that in the near term, the core profit margin of the Innovative Medicines division would continue to expand to the “mid-1930s”, in the medium term to the “30s to 1930s.”