Novartis to buy French drugmaker for $3.9B

Lloyd Doyle
October 31, 2017

Swiss pharmaceutical company Novartis AG plans to buy French drugmaker Advanced Accelerator Applications for $3.9 billion.

Advanced Accelerator Application develops molecular nuclear medicine, including Lutathera.

Lutathera and other radiopharmaceuticals are rare medicinal formulations made up of radioisotopes which are clinically used for diagnosis and therapy.

In September, Lutathera was approved in Europe for the treatment of unresectable or metastatic, progressive, well differentiated (G1 and G2), somatostatin receptor positive GEP-NETs in adults, following its positive Phase III trial.

The company's first theragnostic pairing for neuroendocrine tumors includes diagnostic drugs NETSPOT® in the United States and SomaKit TOC™ in Europe; and therapeutic USAN: lutetium Lu 177 dotatate/INN: lutetium (177Lu) oxodotreotide (Lutathera®), which is approved for use in Europe and now under review with the U.S. Food and Drug Administration. It was shown to significantly increase the chances of survival in patients with neuroendocrine tumors that could not be removed surgically, when compared with the standard hormone therapy.

AAA expects the transaction to help in the launch of lutetium Lu 177 dotatate (Lutathera) for NETs and also in fueling the advancement of its oncology theragnostic platform.

The deal - which is subject to approval - would see Novartis pay $3.9 bn (€3.5m) for the Saint-Genis-Pouilly, France-headquartered firm.

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