Novartis Mulls Divesting Some Assets Of Radiopharma Unit In Strategic Shift

Swiss pharmaceutical giant Novartis AG NVS is reportedly contemplating selling sections of radiopharmaceuticals company Advanced Accelerator Applications to align with the company's strategy and the broader industry trend to shed low-growth segments.

Novartis is currently in the initial phase of assessing a potential sale. Although discussions are underway, there remains uncertainty surrounding the outcome, emphasizing that a deal is not guaranteed, Bloomberg reports.

Advanced Accelerator Applications produces radioactive medicines treating ailments like cancer and is a pioneer in molecular imaging, aiding in the early diagnosis of various disorders, ranging from cancers to cardiovascular and neurological diseases.

Under the leadership of Chief Executive Officer Vas Narasimhan, Novartis has echoed the industry sentiment, moving away from less lucrative ventures, Bloomberg noted. Instead, they are setting their sights on growth-driven areas, notably rare diseases.

In a recent move this June, Novartis finalized a deal to divest a portion of its eye medicine range to Bausch + Lomb Corporation BLCO. 

Earlier in the year, the company acquired Chinook Therapeutics Inc for ng $3.5 billion, aiming to incorporate two advanced treatments undergoing trials for a unique kidney ailment.

To trace AAA's origins, one would go back to 2002 when it was established as an offshoot of the European Organization for Nuclear Research, popularly known as CERN. In a significant acquisition move, Novartis procured the company in 2017 for an estimated $3.9 billion.

Price Action: NVS shares are down 2.29% at $99.21 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.