Swiss pharmaceutical company Novartis has reached a deal to buy cholesterol drugmaker The Medicines Co. for $9.7 billion.
Novartis will pay $85 per share for the New Jersey biotech company, a sharp increase over The Medicine Co.’s Friday closing price of $68.55 per share. The deal is worth $9.7 billion, including outstanding stock options and convertible debt.
The Medicines Co. is in late-stage studies of a drug, inclisiran, meant to lower cholesterol.
Novartis has a pattern of acquiring other companies in recent years to expand its portfolio of drugs.
“We’re hoping to reimagine treatment of the leading global cause of death. This could be a strong step forward in Novartis’ transformation into a focused medicines company,” Novartis CEO Vas Narasimhan tweeted Sunday.
The Medicines Co. focuses on researching treatments for cardiovascular disease, specifically looking at ways to lower so-called bad cholesterol.
The deal is expected to close early next year.
The Associated Press