Novartis to Acquire Heart Drug Maker The Medicines Co

Swiss drugmaker Novartis announced this week that it is acquiring The Medicines Co in a $9.7 billion takeover.

Novartis is paying $85 per share in cash, a 24% premium over The Medicines Co’s closing price of $68.55 this past Friday. Novartis plans to pay for with one-third cash and two-thirds long-term borrowings.

The company is after the U.S biotechnology company’s lone drug, the cholesterol-lowering injection called inclisiran.
Inclisiran has yet to gain regulators’ approval, but is set to require twice-yearly injections by doctors.

This is less frequently than the 26-injection regimens of Amgen’s Repatha and Sanofi’s and Regeneron’s Praluent cholesterol-lowering drugs.

“We believe that will lead to less patient abandonment,” Novartis CEO Vasant Narasimhan told investors on a call on Monday. “Payers will have confidence knowing that physician administration will ensure patient compliance.”

“We see returns well in excess of cost of capital,” Chief Financial Officer Harry Kirsch said.

Our company’s singular, relentless focus and the unwavering commitment of our employees have led to this opportunity to unlock the intrinsic value of inclisiran for patients and to maximize value for our shareholders,” said Mark Timney, Chief Executive Officer of The Medicines Company. “We are excited that millions of patients with atherosclerotic cardiovascular disease and familial hypercholesterolemia will potentially benefit from this transformational therapy.”
Alexander J. Denner, Ph.D., Chairman of The Medicines Company Board of Directors, said: “This $9.7 billion transaction is a great outcome for shareholders of The Medicines Company. Not so long ago, The Medicines Company was at a crossroads due to the loss of its key revenue driver. I am proud of the company’s transformation under a reconstituted board into a lean, highly focused team successfully advancing an exciting new therapy and creating tremendous value for patients and shareholders.”

“We recognized the innovative promise of inclisiran and focused the company’s resources to advance it from early development through phase 3 in ‘record’ time for the benefit of patients. Inclisiran has the potential to revolutionize the treatment of cardiovascular disease and profoundly improve the lives of millions of people around the world.”

Dr. Denner continued, “Our vision for inclisiran is an affordable, widely available treatment that will dramatically reduce both the medical and economic burden of cardiovascular disease. Given the enormous capital required to realize its full potential, we have decided to sell to a company with resources and scale in excess of ours.”
“On behalf of the board, I thank our outstanding management team and talented employees for their tireless work and dedication. I would also like to thank our partner Alnylam whose gracious support was invaluable in consummating this transaction.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.