Novartis Group France has completed a tender to buy Advanced Accelerator Applications S.A. for $3,9 billion, or $41.00 per ordinary share and $82.00 per ADS.
Novartis, announcing the purchase by its subsidiary said that it was payable net to the seller in cash, without interest, for the total of $3,9 billion.
AAA is a radiopharmaceutical company that develops, produces and commercializes Molecular Nuclear Medicines. This shopping will add Lutathera to Novartis’ oncology. Lutathera is a first-in-class RLT product for neuroendocrine tumors (NETs), in addition to a portfolio of diagnostic products including NETSPOT/SOMAKIT and F-18 PET.
According to Novartis’s press release, 94,380,927 Ordinary Shares were validly tendered and not properly withdrawn. Five of AAA’s existing Board members have resigned and four new Board members have been coopted.
Stefano Buono, Chief Executive Officer of AAA, said: “The AAA team is excited to join the Novartis family. Novartis’ strong presence in the global oncology community will help AAA optimize the success of lutetium Lu 177 dotatate (Lutathera) and provide the best possible care for NET patients.”
“We believe AAA’s unique radiopharmaceutical platform and theragnostic approach are complementary to Novartis’ existing oncology offerings. Together, we hope to accelerate the development of AAA’s pipeline and bring further innovation to the oncology patient community.”
“Advanced Accelerator Applications brings to Novartis a potential paradigm changing therapy in Lutathera which builds on our established leadership in neuroendocrine tumor treatment, as well as a portfolio of innovative R&D technology platforms in the nuclear medicines space,” said Vas Narasimhan, Global Head, Drug Development and Chief Medical Officer, Novartis. “We are excited to welcome AAA to the Novartis organization so we can collectively transform cancer care for patients.”
In addition to Lutathera in NET, AAA’s radioligand therapy (RLT) pipeline includes 177Lu-PSMA-R2 which is currently being investigated in a phase 1/2 study in prostate cancer and other assets in pre-clinical testing, as well as a range of diagnostic programs.
AAA’s Resigning board members are: Claudio Costamagna, Stefano Buono, Christine Mikail Cvijic, François Nader, and Léopoldo Zambeletti.
The coopted Board members are Frédéric Collet, Augusto Lima, Susanne Schaffert, and Jessica Toepfer. Claudio Costamagna has resigned from his office as Chairman of the Board of AAA, Stefano Buono has resigned from his office as directeur général of AAA and Gérard Ber and Heinz Mäusli have each resigned from his office as directeur général délégué of AAA. The Board has appointed Susanne Schaffert as the new Chairman of the Board and directeur général of AAA.
Image: The logo of Swiss drugmaker Novartis is seen at its headquarters in Basel, Switzerland October 22, 2013. REUTERS/Arnd Wiegmann/File Photo