Novartis to Acquire The Medicines Company for $9.7 billion

November 25, 2019

The acquisition of The Medicines Company and its investigational cholesterol-lowering therapy extends Novartis’ cardiovascular pipeline.

Novartis announced on Nov. 24, 2019 plans to acquire The Medicines Company for approximately $9.7 billion; The Medicines Company recently announced positive clinical trial results for inclisiran, an investigational cholesterol-lowering therapy. Inclisiran, a small-interfering RNA (si-RNA) class, is administered as a twice-yearly therapy.

In mid-November 2019, The Medicines Company announced data from three Phase III trials for inclisiran involving more than 3600 high-risk patients with atherosclerotic cardiovascular disease (ASCVD) and familial hypercholesterolemia. The studies found inclisiran demonstrated potent and durable LDL cholesterol reduction with an excellent safety and tolerability profile, the company reported.

The Medicines Company obtained rights to develop, manufacture, and commercialize inclisiran under a license and collaboration agreement with Alnylam Pharmaceuticals and plans to file regulatory submissions in the United States in the fourth quarter of 2019 and in Europe in the first quarter of 2020.

The offer price of $85.00 per share in cash represents a premium of approximately 41% over The Medicines Company’s 30-day volume weighted average price of $60.33; valuing the company at approximately $9.7 billion, the company reported. The transaction has been unanimously approved by the Boards of Directors of both companies and is scheduled for closing in the first quarter of 2020 subject to closing conditions.

“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 Marie-France Tschudin, president, Novartis Pharmaceuticals, in a press statement. “This transformational, new investigational medicine has the potential to meaningfully address one of the largest areas of underserved patient need. We believe our strong capabilities and global footprint can help drive broad worldwide access to this much needed treatment.”

Until closing, Novartis and The Medicines Company will continue to operate as separate and independent companies. Upon closing, The Medicines Company becoming an indirect wholly owned subsidiary of Novartis.

Source: Novartis and The Medicines Company