Novartis to buy French cancer specialist AAA for $3.9 billion
Novartis agrees to pay $3.9 billion for France-based Advanced Accelerator Applications
With AAA, Novartis gets technology using radioactive compounds to diagnose and fight cancer.
The cash deal, valued at approximately $3.9 billion, proposes to acquire all the outstanding shares of AAA, at a price reflecting a 47 percent premium to the one before media reports on Sept. 27 that Novartis was interested. The ADS closed on Friday at $72.91 and were priced at only $16 when they listed two years ago.
AAA is an innovative radiopharmaceutical company and established leader in molecular nuclear medicine theragnostics. It announced in late September, European approval of its flagship product, Lutathera, for the treatment of rare gastroenteropancreatic neuroendocrine tumors and it seems Novartis would be an ideal partner, with its strong legacy in the development and commercialization of medicines for neuroendocrine tumors.
The drug, currently under review with the FDA, harnesses a molecule not only to diagnose cancer but also to deliver treatment by hitting tumors with high-energy electrons.
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