Novartis avoids danger with nuclear M&A option
30/10/2017 10:47
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Neil Unmack
LONDON, Oct 30 (Reuters Breakingviews) - The Swiss drugmaker
is paying $3.9 bln for France's Advanced Accelerator, which uses
radiation to fight tumours. The deal is at a hefty 47 pct
premium, but it's logical and ticks financial boxes. It won't
drive investors wild, but they don't need to run for the
shelters, either.
Full view will be published shortly.
On Twitter https://twitter.com/Unmack1
CONTEXT NEWS
- Novartis on Oct. 30 said it had agreed to make a tender
offer for the outstanding stock of France's Advanced Accelerator
Applications, which specialises in molecular nuclear medicine.
- The $41 per ordinary share or $82 per American depositary
share offer values AAA's equity at $3.9 billion, Novartis said.
The price represents a 47 percent premium to AAA's share price
before media reports on Sept. 27 revealed Basel-based Novartis'
interest.
- AAA's main product is a radio ligand therapy, called
Lutathera, used for treatment of neuroendocrine tumours. It has
been approved in Europe and is under review in the United
States.
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Novartis statement https://www.novartis.com/news/media-releases/novartis-announces-planned-acquisition-advanced-accelerator-applications
Novartis to buy France's Advanced Accelerator for $3.9 bln
urn:newsml:reuters.com:*:nL8N1N50TD
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(Editing by Richard Beales and Liam Proud)
((neil.unmack@thomsonreuters.com; Reuters Messaging:
neil.unmack.thomsonreuters.com@reuters.net))
Keywords: NOVARTIS ADVANCED ACCELERATOR/BREAKINGVIEWS