Switzerland-based Novartis agreed to buy US biotechnology firm The Medicines Company for $9.7 billion. Shareholders of Medicines will receive $85 per share in cash, a 24% premium over the closing price on November 22.
Additionally, the price also represents a premium of 41% over the company’s 30-day volume weighted average price of $60.33 per share.
Both boards have approved the transaction, which will be funded through available cash and borrowings.
Novartis said that it expects to close the purchase in the first quarter of next year. The transaction is subject customary closing conditions and regulatory clearance.
Both the buyer and the target will operate as independent companies until the deal closes.
“Novartis has a longstanding history of delivering breakthrough cardiovascular treatments for patients, and I am very excited about the opportunity to add inclisiran to our cardiovascular portfolio,” said Novartis president Marie-France Tschudin.
Recently, Medicines announced promising data from a clinical trial for inclisiran in 3,600 patients with atherosclerotic cardiovascular disease and hypercholesterolemia. In all trials, inclisiran demonstrated an excellent safety and tolerability profile.
In addition, inclisiran will start contributing to sales from 2021, Novartis added. The Swiss company said that the inclisiran has the potential to be among the largest drugs by sales in its portfolio.
Shares in The Medicines closed at $68.55 apiece on Friday, down 1.7%. The stock is up more than 250% year-to-date.