Novartis has signed a $3.9 billion MOU with Advanced Accelerator Applications

By Catherine Sturman
It has recently been announced that radiopharmaceutical giant Advanced Accelerator Applications (AAA) has signed a Memorandum of Understanding (MOU) wit...

It has recently been announced that radiopharmaceutical giant Advanced Accelerator Applications (AAA) has signed a Memorandum of Understanding (MOU) with Novartis.

The deal will see Novartis acquire all outstanding shares of AAA in a $3.9 billion cash transaction, with Jefferies acting as as Exclusive Financial Advisor to AAA.It represents Jefferies' 82nd healthcare advisory deal since January 2016 and 41st biotechnology M&A deal since January 2010.

AAA currently operates over 20 research and development facilities. The acquisition demonstrates the growing importance of Nuclear Medicine as a novel treatment approach in the Oncology space, and will enable AAA to advance its oncology theragnostic platform. Additionally, it will allow Novartis to further its ambitions to treat diseases, such as cancers through utilising AAA’s personalised tools and technologies.

Mr. Stefano Buono, Chief Executive Officer of AAA has said, “It is with great satisfaction that we announce this proposed transaction with Novartis, who we have long felt would be an ideal partner to enhance the launch of lutetium Lu 177 dotatate* (Lutathera) for neuroendocrine tumours (NETs).”

Related stories

“We believe that the combination of our expertise in radiopharmaceuticals and theragnostic strategy together with the global oncology experience and infrastructure of Novartis, provide the best prospects for our patients, physicians and employees, as well as the broader nuclear medicine community.”

The company recently received European approval surrounding the marketing authorisation for Lutathera in September, and is currently under review by the Food & Drug Administration.

“Novartis has a strong legacy in the development and commercialisation of medicines for neuroendocrine tumours where significant unmet need remains for patients,” commented Bruno Strigini, Head of Novartis Oncology.

The growth of Novartis in this area is in stark contrast to its generics division. The company is set to cut over 400 jobs within its Colorado manufacturing plant as a result of growing price pressures within the pharmaceutical market, against a battle to remain competitive against new and similar players.


Featured Articles

UPS Healthcare Addressing Connected Logistics Needs

UPS Healthcare is meeting increased need for integrated, globally connected healthcare logistics services in Republic of Ireland, where pharma is booming

HPV Vaccine 'Protects Males from Cancers' - Global Report

As a new report shows the human papillomavirus vaccine can also protect men and boys, we take a look at HPV vaccines, and their impact on world health

Tata Consultancy Report Shows AI in Healthcare on Rise

Tata Consultancy Services AI for Business Global Study shows that three-quarters of healthcare leaders are deploying AI to drive innovation and efficiency

McKinsey: Consumers Demand Data-driven Wellness Products

Medical Devices & Pharma

SpaceX Starlink Launch Boost for Indonesia Healthcare

Technology & AI

J&J Targets Supplier Sustainability to Cut Healthcare GHGs