Daily Management Review

Novartis to pay $ 9.7 billion for US biotech company The Medicines Co


Novartis buys The Medicines Co, a US-based biotechnology company, for about $ 9.7 billion. The Swiss pharmaceutical company aims to expand its portfolio of anti-cardiovascular drugs.

--Andrew- via flickr
--Andrew- via flickr
Novartis will pay $ 85 per share in cash, which is about 24% higher than The Medicines Co shares at $ 68.55 at the close of trading on Friday.

According to Novartis, the deal was approved by the boards of directors of both companies and will be funded from existing cash and short-term and long-term loans.

Novartis expects that the deal will beclosed in the first quarter of 2020. The firm believes that the Medicines Co’s drug Inclisiran, aimed to lower cholesterol, will begin to contribute to sales in 2021 and may become one of the largest in terms of sales of products in the portfolio of Novartis.

source: reuters.com