Novartis' Latest Acquisition Of The Medicines Company Sets It Up For A Large Market

|
About: The Medicines Company (MDCO), NVS, Includes: ALNY, AMGN, REGN, SNY
by: Terry Chrisomalis
This article is exclusive for subscribers.
Terry Chrisomalis
Long only, biotech, healthcare, short only
Summary

Novartis announced that it would acquire The Medicines Company for $9.7 billion or for $85 per share, which was a 25% premium from Friday's close.

The acquisition came in time because an NDA filing for inclisiran to the FDA is expected in Q4 of 2019, with an MAA filing of the drug thereafter in Q1 2020.

Competing PCSK9 products in the cholesterol treatment space include Praluent from Sanofi and Regeneron Pharmaceuticals and Repatha from Amgen.

Inclisiran has several advantages in that patients are only required to be given the treatment twice per year and the cost of manufacturing the treatment is much lower compared to the other PCSK9 inhibitors.

Novartis (NVS) announced that it would acquire The Medicines Company (MDCO) for $9.7 billion. This buyout was at $85 per share which was a 25% premium to the closing price on