Novartis to bolster oncology portfolio with $3.9 billion acquisition
pharmafile | October 30, 2017 | News story | Sales and Marketing | Advanced Acclerator Applications, Lutathera, Novartis, pharma
Novartis has announced its intention to acquire France’s Advanced Accelerator Applications (AAA) for $3.9 billion in a move to reinforce its oncology portfolio. The deal translates to $41 per share, with the Swiss firm planning to finance the deal with debt.
AAA is a radiopharmaceutical company that develops, manufactures and markets molecular nuclear medicines, a class of therapy which utilises radioisotopes to both diagnose and treat cancer.
As part of the acquisition, Novartis will pick up AAA’s flagship product Lutathera, which scored EU approval in September for the treatment of gastroenteropancreatic neuroendocrine tumours, a specific variety of cancer infamous for taking the life of Apple’s Steve Jobs. The drug operates by attacking cancer cells with high-energy electrons. It currently awaiting an approval decision from the FDA.
“Novartis has a strong legacy in the development and commercialisation of medicines for neuroendocrine tumours where significant unmet need remains for patients,” stated Bruno Strigini, head of Novartis Oncology. “With Lutathera we can build on this legacy by expanding the global reach of this novel, differentiated treatment approach.”
AAA also responded to the news, with Chief Executive Stefano Buono remarking: “We believe that the combination of our expertise[…]together with the global oncology experience and infrastructure of Novartis provide the best prospects for our patients, physicians and employees, as well as the broader nuclear medicine community.”
Matt Fellows
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