Novartis buy Medicines Company for $9.7 billion
The cholesterol drug maker, Medicines Co. (MDCO) hit a record high in the stock market on Monday after the $9.7 billion acquisition of the Medicines Company by Swiss pharmaceutical giant Novartis announced Sunday. MDCO is into developing a cholesterol drug Inclisiran, a small interfering RNA therapy.
Novartis agreed to pay $85 per share for Medicines Co. valuing the US-based company at about $9.7 billion. The price represents the 45% premium to its closing price of $58.65 on November 18. Thee Boards of Directors of both companies unanimously agreed to the deal.
Novartis CEO Vas Narasimhan expressed their excitement to join hands with Medicines as Inclisiran is a transformational medicine that has the potential to reenvision the treatment for familial hypercholesterolemia and atherosclerotic cardiovascular disease. He believes that Inclisiran could improve the therapy remarkably and help healthcare to address one of the significant causes of death in the world.
Medicines Co. shares rose 22.5% higher on early Monday after the takeover deal with Novartis for $85 per share, an amount not so great for Novartis, but an all-time high that values the Medicines Co. for an almost $10 billion. Novartis shares surged 0.7% higher at
3:40 p.m. Monday in Zurich.Novartis is a leading manufacturer of products like Zolgensma, gene therapy for a catastrophic muscle disease that the company acquired after the deal with drugmaker AveXis Inc. for $8.7 billion in 2018. The previous year, Novartis also bought Endocyte Inc. for $2.1 billion.
Previously this month, Medicines Co. published remarkable results on Inclisiran, a twice per year injection that could bring a cure to the patients suffering from high lev at an American Heart Association conference about levels of “bad cholesterol,” the LDL. The team will go for FDA approval later this year.
Inclisiran offers the possibility of a potent and durable treatment for the “bad cholesterol” levels with the help of a twice-yearly injection, helping both the patients and healthcare professionals to achieve more control over the condition.
Editors Note: Novartis buy Medicines Company for $9.7 billion. Medicines Co. shares hit a record high on Monday. Medicines Company, the cholesterol drug maker manufacture Inclisiran
