Contact Us   |   Print Page   |   Sign In   |   Join
News and Press: Member Organization News

Novartis to Buy AveXis for $8.7 Billion

Thursday, April 12, 2018   (0 Comments)
Share |

SOURCE

 


    Please use the sharing tools found via the email icon at the top of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour.
    https://www.ft.com/content/7af1044a-3bb1-11e8-b9f9-de94fa33a81e

    Swiss pharmaceuticals company Novartis is spending $8.7bn to acquire AveXis, a US specialist in spinal muscular atrophy, a childhood wasting disease, in the latest big strategic move by its new boss.

Vas Narasimhan, who took over as chief executive earlier this year, said the cash deal to buy the Nasdaq-listed US company would broaden Novartis’s strength in neuroscience.

The deal followed last month’s sale to GlaxoSmithKine of the Swiss group’s 36.5 per cent stake in their consumer health joint venture for $13bn.

Mr Narasimhan has wants focus on Novartis’s “core” business areas — innovative prescription medicines, as well as oncology, generics and eyecare.

Novartis is paying $218 per AveXis share, which closed on Friday at $115.91. Novartis said AveXis’s lead product candidate AVXS-101 had the potential to be “the first-ever one-time gene replacement therapy” for spinal muscular atrophy (SMA), a disease which results in early death or life long disability with considerable health costs.

Paul Hudson, CEO Novartis Pharmaceuticals, said: “Bringing AveXis on board would support both our ambition to be a leader in neurodegenerative diseases and our Neuroscience franchise priorities to strengthen our position in devastating pediatric neurological diseases such as SMA.

“We relish the opportunity to leverage our expertise, our 70-plus year heritage in neuroscience and our global footprint to help AVXS-101 benefit high-need SMA patients around the world.”


Creating Value
by delivering business-critical resources & bottom line savings
Building Networks
by connecting Michigan's bio-industry one member at a time
Growing Talent
by creating opportunities that develop people & build organizations
Membership Software Powered by YourMembership  ::  Legal