BREAKING NEWS

Novartis nears deal to buy U.S. biotech firm Medicines Co for about $7 billion - WSJ

Novartis nears deal to buy U.S. biotech firm Medicines Co for about $7 billion - WSJ
FILE PHOTO: Switzerland's national flag flies in front of the logo of Swiss drugmaker Novartis in Basel, Switzerland, January 30, 2019. REUTERS/Arnd Wiegmann -
Copyright
Arnd Wiegmann(Reuters)
Text size Aa Aa

(Reuters) – Swiss drugmaker Novartis AG <NOVN.S> is nearing an agreement to acquire U.S. biotechnology firm The Medicines Co <MDCO.O> for about $7 billion, the Wall Street Journal reported https://on.wsj.com/2qveZtj on Saturday.

The deal, in which Novartis has agreed to pay $85 a share, could be announced this weekend, the Journal reported, citing people familiar with the matter.

Going by a fully diluted share count, the agreement is worth about $10 billion, according to the report.

Novartis declined to comment. The Medicines Co did not respond to a request for comment on Saturday.

The deal could broaden the Swiss drugmaker’s cabinet of heart medicines and shore up growth threatened by patent expirations.

Novartis has been hunting for a $5 billion acquisition in the United States, two banking sources told Reuters earlier this week without identifying a target.

New Jersey-based The Medicines Co’s top drug candidate is cholesterol-lowering drug inclisiran for heart patients. Novartis has historically had a strong cardiovascular drug franchise, but lost ground when Diovan, once a $6 billion-per-year seller, lost patent protection in 2012 and left the company without an immediate, innovative follow-up product.

Novartis has since been building up its portfolio, which now includes Entresto, a $1 billion seller for heart failure, as well as an experimental RNA-targeting molecule from Ionis Pharmaceuticals <IONS.O> that it licensed earlier this year for $150 million.

(Reporting by Kanishka Singh in Bengaluru; editing by Jonathan Oatis and Chizu Nomiyama)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on euronews.com for a limited time.
Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.