Novartis Confirms Deal To Acquire Medicines Company For $9.7B

Following reports last week, Novartis AG NVS confirmed on Monday a deal to acquire the Medicines Company MDCO for $9.7 billion, or $85 per share.

The transaction is expected to close in the first quarter of 2020 and up until closing Novartis and the Medicines Company will continue to operate as separate and independent companies. The transaction has been unanimously approved by the boards of directors of both companies.

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"We are excited about entering into an agreement to acquire The Medicines Company as inclisiran is a potentially transformational medicine that reimagines the treatment of atherosclerotic heart disease and familial hypercholesterolemia,” said Novartis CEO Vas Narasimhan. “With tens of millions of patients at higher risk of cardiovascular events from high LDL-C, we believe that inclisiran could contribute significantly to improved patient outcomes and help healthcare systems address the leading global cause of death.”

The transaction fits long-term strategic goals and the acquisition of Medicines Company would allow Novartis to continue building pipeline depth in a key therapeutic area.

Medicines Company's stock traded higher by 22% to $84.11 per share at time of publication.