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Novartis AG Signs A $9.7 Billion Deal With The Medicines Co.

A $9.7 Billion deal was put forth by Novartis AG to purchase a US biotech firm The Medicines Co. For enlarging its medication portfolio, the Swiss drugmaker Novartis AG has decided to add in more cardiovascular disease treatments. The new deal is believed to aid the company in growing faster despite its patent expiration threats. The drugmaker has decided to pay $85 per share in cash that is a 24% premium extra to The Medicines Co.’s final share price of $68.55 right from November 22, 2019. The board of directors seemed to have agreed to the deal and the companies would be monetarily helped with cash and short or long-term loans.

The blockbuster drug of the New Jersey-based The Medicines Co’s is cholesterol-lowering drug inclisiran that was made especially for heart patients. Thus, the Swiss drugmaker will find this drug complementary to its growing business that deals with heart-failure medicine Entresto. The start was slow but it has reached up to the $1 Billion annual revenue threshold. The entire deal is expected to be completed by the end of 2020 and Novartis assumed that inclisiran will help sales escalate by 2021. The drug has the potential to turn into one of the highly sold products in the portfolio. Novartis is not just ready to spend on rare disease treatments but also on the common diseases. The portfolio of medicines is definitely going to be boosted with the bolt-on acquisitions of up to $10 Billion.

Similarly, the Swiss maker had bought gene therapy specialist AveXis for $8.7 Billion along with other cardiovascular treatments for helping millions affected. The company was on the top of the charts of the cardiovascular drug franchise with Diovan that showed $6 billion-per-year seller. However, after losing its patent protection in 2012, the company was left with no option but to have a new product launched or bought as soon as possible.

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