Swiss pharmaceutical company Novartis AG (NYSE: NVS) on Sunday said it will buy cholesterol-drug maker The Medicines Company (NASDAQ: MDCO) for USD 9.7 Billion. Shares of The Medicines Company shot up about 22% following the news while Novartis’ stock price remained about flat.
Novartis will acquire Medicines Company for USD 85.00 per share in cash, valuing the company at approximately USD 9.7 Billion.
The deal, expected to close in the first quarter of 2020, will allow Novartis to get its hands on inclisiran, a treatment to lower bad cholesterol. The Medicines Company expects to file regulatory submissions for the drug in the U.S. in the fourth quarter of 2019 and in Europe in the first quarter of 2020.
Recently, The Medicines Company announced data from its clinical trial involving 3,600 patients. According to results from the trial, inclisiran “demonstrated potent and durable” bad cholesterol reduction while remaining safe and tolerable.
Promising data surrounding inclisiran had sent Medicines Company’s stock up around 200% this year, even before rumors of a buyout hit full swing last week.
“This transformational, new investigational medicine has the potential to meaningfully address one of the largest areas of underserved patient need,” said Marie-France Tschudin, President of Novartis Pharmaceuticals. “We believe our strong capabilities and global footprint can help drive broad worldwide access to this much needed treatment.”
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