Novartis to Acquire The Medicines Company at $85 a Share

Novartis to Acquire The Medicines Company

  • Novartis (NVS) decided to buy The Medicines Company (MDCO) at $6.8 million. The Medicines Company’s shareholders will be getting $85 per share in cash  – a 45% premium to its unaffected share price and a 57% premium to its unaffected one-week average price.
  • The Transaction is expected to be completed in the first quarter of 2020

The Medicines Company announced that it will be acquired by Novartis AG for $85 per share in an all-cash transaction, implying a fully diluted equity value of $9.7 billion. The price represents a premium of approximately 45% to The Medicines Company’s closing share price of $58.65 on November 18, 2019 (the last trading day prior to news reports of a potential transaction between The Medicines Company and Novartis AG).

The transaction was unanimously approved by the Boards of Directors of both firms.  

Novartis’ target is to acquire The Medicines Company’s RNAi inclisiran therapy for the lowering of the LDL cholesterol.

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