The Basel-based pharmaceutical company Novartis has entered into a memorandum of understanding to acquire Advanced Accelerator Applications, a French radiopharmaceutical company that specializes in nuclear medicine. The purchase price amounts to nearly $4 billion.
Nuclear medicine deals with functional disorders in the human body on a molecular level. According to a Novartis statement, Advanced Accelerator Applications (AAA) develops, produces and commercializes medicines in this field, which can be used in both cancer diagnostics and treatment. The Basel-based pharmaceutical company intends to submit a tender offer to the AAA shareholders, valuing AAA’s equity at $3.9 billion.
One of AAA’s molecular nuclear medicines is Lutathera, which was approved in Europe in September for the treatment of certain tumours. The medicine is currently under review in the US.
As Bruno Strigini, CEO of Novartis Oncology, explains, Novartis has a “strong legacy” in the treatment of neuroendocrine tumours. “With Lutathera we can build on this legacy by expanding the global reach of this novel, differentiated treatment approach.”
Novartis will benefit from more than just Lutathera through the acquisition. The Basel-based company would also acquire a new technology platform that can be used in the battle against cancer. AAA also has other product candidates that are still in the development phase.