Novartis announced on Monday that it has entered into an agreement to acquire and merge with AveXis, the American gene therapy company. The settlement priced $218 per share for a total of $8,7 billion in cash. The transaction was unanimously approved by the boards of directors of both companies.
Novartis hopes to complete the transaction by mid-2018. This acquisition will have a slightly negative impact on its operating income in 2018 and 2019, mainly due to costs related to R&D investments, the Swiss company said in the note. From 2020, however, the deal is expected to exert its favorable impact, thanks to a strong increase in sales expected in the AveXis business.
The American company, which develops treatments for patients with rare genetic diseases in neurology, currently has several clinical trials underway for the treatment of spinal muscular atrophy (Sma), a degenerative disease that causes early death or permanent disability, and AVXS -101, AveXis' flagship product, has the potential to be the first gene replacement therapy for this disease.
