Novartis AG announced on Monday that it will be acquiring Advanced Accelerator Applications, a French pharmaceutical group specialized in the field of nuclear medicine.
The Swiss pharmaceutical company will buy Advanced Accelator Applications in a deal valued at $3.9 billion and in efforts to strengthen its oncology business.
The company has entered into a memorandum of understanding (MOU) to buy all of the share capital of Advanced Accelerator Application (AAA).
AAA produces and commercializes Lutathera, its flagship product that is used against rare gastroenteropancreatic neuroendocrine tumours. This is the kind of tumor that killed Apple’s Steve Job. The product won European Union backing in late September.
“Novartis has a strong legacy in the development and commercialisation of medicines for neuroendocrine tumours,” remarked Bruno Strigini, head of Novartis Oncology. “With Lutathera we can build on this legacy.”
As per the agreement, Novartis will make a $41 a share cash offer for AAA and $82 per American Depositary Share, subject to certain conditions, valuing AAA at $3.9 billion.
Disclaimer: We have no position in Novartis AG (ADR) (NYSE: NVS) nor Advanced Accelerator Application SA (ADR) (NASDAQ: AAAP) and have not been compensated for this article.