Novartis to buy nuclear medicine company Advanced Accelerator Applications
Pharma acquisition news : Novartis, the Switzerland-based global healthcare company will acquire Advanced Accelerator Applications (AAA), a French radiopharmaceutical company for a sum of $3.9 billion, in a move to bolster its oncology platform.
What Novartis expects from the acquisition of the nuclear medicine company is product launches in the near term and the addition of a new technology platform which is believed to have potential applications across different oncology early development programs.
Founded in 2002 and headquartered in Saint-Genis-Pouilly, Advanced Accelerator Applications makes and markets molecular nuclear medicines. Included in the list of the French nuclear medicine company is Lutathera, a somatostatin analogue peptide which is being developed for the treatment of neuroendocrine tumors.
Radiopharmaceuticals like Lutathera are unique medicinal formulations which comprise radioisotopes, and can be used clinically for diagnosis as well as treatment.
Headquarters of the French nuclear medicine company Advanced Accelerator Applications. Photo courtesy of Advanced Accelerator Applications.
As per pharma industry news, Advanced Accelerator Applications had secured Lutathera approval in Europe in September for the treatment of gastroenteropancreatic neuroendocrine tumors in patients who are somatostatin receptor positive and whose disease is unresectable or metastatic, progressing and well differentiated (G1 and G2).
The French nuclear medicine company is hoping for Lutathera FDA approval in the US in the coming days.
Commenting on Novartis acquisition of Advanced Accelerator Applications, Bruno Strigini, who is the Novartis Oncology CEO said: “Novartis has a strong legacy in the development and commercialization of medicines for neuroendocrine tumors where significant unmet need remains for patients.
“With Lutathera we can build on this legacy by expanding the global reach of this novel, differentiated treatment approach and work to maximize Advanced Accelerator Applications broader RLT pipeline and an exciting technology platform.”
Advanced Accelerator Applications anticipates the Novartis acquisition would help in launching the Lutathera treatment of neuroendocrine tumors and also in speeding up the advancement of the nuclear medicine company’s oncology theragnostic programs.
Stefano Buono, the CEO of Advanced Accelerator Applications commenting on the Novartis acquisition, said: “We recognize the value creation this proposed transaction provides for our shareholders, who have supported our growth over the past 15 years.
“We believe that the combination of our expertise in radiopharmaceuticals and theragnostic strategy together with the global oncology experience and infrastructure of Novartis, provide the best prospects for our patients, physicians and employees, as well as the broader nuclear medicine community.”
As per the terms of the deal, Novartis will buy all the ordinary shares of the French nuclear medicine company at $41 per share and $82 for each of the American depositary shares.
According to pharma acquisition news, Novartis acquisition of Advanced Accelerator Applications will depend on regulatory approvals along with other customary conditions.
For more such pharma industry news, keep checking OyeChronicle.com.