Novartis Signs MoU To Buy Advanced Accelerator Applications In $3.9 Bln Deal

(RTTNews) - Novartis (NVS) announced Monday that it has entered a memorandum of understanding with Advanced Accelerator Applications or AAA (AAAP), under which the company intends to commence a tender offer for 100% of the share capital of AAA subject to certain conditions.

Under the terms of the memorandum of understanding, Novartis will make a cash offer of $41 per ordinary share of AAA and $82 per American Depositary Share, each representing 2 ordinary shares of AAA, subject to certain conditions. This offer values AAA's equity at $3.9 billion.

The transaction to acquire AAA is planned to be fully funded through external short- and long-term debt.

AAA is a radiopharmaceutical company that develops, produces and commercializes Molecular Nuclear Medicines including Lutathera ((177)Lu-DOTATATE), a first-in-class RLT product for neuroendocrine tumors or NETs.

Radiopharmaceuticals, such as Lutathera, are unique medicinal formulations containing radioisotopes which are used clinically for both diagnosis and therapy.

Novartis expects the acquisition to strengthen its oncology presence with both near-term product launches as well as a new technology platform with potential applications across a number of oncology early development programs.

Lutathera was approved in Europe in September 2017 for the treatment of unresectable or metastatic, progressive, well differentiated (G1 and G2), somatostatin receptor positive gastroenteropancreatic neuroendocrine tumors or GEP-NETs. Lutathera is under review in the U.S. with a Prescription Drug User Fee Act date of January 26, 2018.

In addition to Lutathera, AAA brings a broad set of skills in developing, manufacturing and commercializing radiopharmaceuticals, including the companion diagnostics for Lutathera (NETSPOT and SomaKit TOC. AAA had sales of 109 million euros in 2016.