Released December 02, 2019 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Swiss pharmaceutical major Novartis International AG (NYSE:NVS) (Basel, Switzerland) is betting big on heart drug prospect inclisiran with an 8.8 billion-euro ($9.7 billion) takeover of The Medicines Company (NASDAQ:MDCO) (New Jersey).
The acquisition of the U.S.-based biopharmaceutical company gives it a heavyweight cardiovascular rival to Amgen's Repatha and Regeneron and Sanofi's Praluent drugs. Novartis is paying $85 per share in cash, a 45% premium over MedCo's share price of $58.65 at the time of the deal.
Inclisiran, which lowers bad cholesterol by targeting the RNA which makes the PCSK9 protein, is MedCo's lone drug and was described by Novartis as "a potentially transformational investigational cholesterol-lowering therapy to address leading global cause of death". Unlike rival drugs, inclisiran patients require just two injections per year compared with up to 26 per year with existing treatments. The drug just completed successful Phase III trials (ORION-9, 10 and 11) involving more than 3,600 high-risk patients. In all trials, inclisiran demonstrated "potent and durable LDL-C reduction with an excellent safety and tolerability profile 2,3,4," MedCo said. The drugmaker is seeking regulatory approval in the U.S. this year and will seek similar approvals in Europe early in 2020.
Vas Narasimhan, Novartis' chief executive officer, said: "We are excited about entering into an agreement to acquire The Medicines Company as inclisiran is a potentially transformational medicine that re-imagines the treatment of atherosclerotic heart disease and familial hypercholesterolemia. With tens of millions of patients at higher risk of cardiovascular events from high LDL-C, we believe that inclisiran could contribute significantly to improved patient outcomes and help healthcare systems address the leading global cause of death. The prospect of bringing inclisiran to patients also fits with our overall strategy to transform Novartis into a focused medicines company and adds an investigational therapy with the potential to be a significant driver of Novartis' growth in the medium to long term."
Alexander J. Denner, chairman of The Medicines Company's board of directors, added: "We recognised the innovative promise of inclisiran and focused the company's resources to advance it from early development through phase 3 in 'record' time for the benefit of patients. Inclisiran has the potential to revolutionize the treatment of cardiovascular disease and profoundly improve the lives of millions of people around the world. Our vision for inclisiran is an affordable, widely available treatment that will dramatically reduce both the medical and economic burden of cardiovascular disease. Given the enormous capital required to realise its full potential, we have decided to sell to a company with resources and scale in excess of ours."
Novartis has been implementing an overall plan to focus on higher-margin medicines, which has seen the company spinning off certain businesses and making cuts in its manufacturing businesses. Last year, Industrial Info reported on plans by Novartis to cut 2,550 jobs in Switzerland and the U.K. For additional information, see October 8, 2018, article - Novartis Axing 2,550 Jobs in Switzerland and the U.K..
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The acquisition of the U.S.-based biopharmaceutical company gives it a heavyweight cardiovascular rival to Amgen's Repatha and Regeneron and Sanofi's Praluent drugs. Novartis is paying $85 per share in cash, a 45% premium over MedCo's share price of $58.65 at the time of the deal.
Inclisiran, which lowers bad cholesterol by targeting the RNA which makes the PCSK9 protein, is MedCo's lone drug and was described by Novartis as "a potentially transformational investigational cholesterol-lowering therapy to address leading global cause of death". Unlike rival drugs, inclisiran patients require just two injections per year compared with up to 26 per year with existing treatments. The drug just completed successful Phase III trials (ORION-9, 10 and 11) involving more than 3,600 high-risk patients. In all trials, inclisiran demonstrated "potent and durable LDL-C reduction with an excellent safety and tolerability profile 2,3,4," MedCo said. The drugmaker is seeking regulatory approval in the U.S. this year and will seek similar approvals in Europe early in 2020.
Vas Narasimhan, Novartis' chief executive officer, said: "We are excited about entering into an agreement to acquire The Medicines Company as inclisiran is a potentially transformational medicine that re-imagines the treatment of atherosclerotic heart disease and familial hypercholesterolemia. With tens of millions of patients at higher risk of cardiovascular events from high LDL-C, we believe that inclisiran could contribute significantly to improved patient outcomes and help healthcare systems address the leading global cause of death. The prospect of bringing inclisiran to patients also fits with our overall strategy to transform Novartis into a focused medicines company and adds an investigational therapy with the potential to be a significant driver of Novartis' growth in the medium to long term."
Alexander J. Denner, chairman of The Medicines Company's board of directors, added: "We recognised the innovative promise of inclisiran and focused the company's resources to advance it from early development through phase 3 in 'record' time for the benefit of patients. Inclisiran has the potential to revolutionize the treatment of cardiovascular disease and profoundly improve the lives of millions of people around the world. Our vision for inclisiran is an affordable, widely available treatment that will dramatically reduce both the medical and economic burden of cardiovascular disease. Given the enormous capital required to realise its full potential, we have decided to sell to a company with resources and scale in excess of ours."
Novartis has been implementing an overall plan to focus on higher-margin medicines, which has seen the company spinning off certain businesses and making cuts in its manufacturing businesses. Last year, Industrial Info reported on plans by Novartis to cut 2,550 jobs in Switzerland and the U.K. For additional information, see October 8, 2018, article - Novartis Axing 2,550 Jobs in Switzerland and the U.K..
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
