Novartis to Acquire Inclisiran, The Medicines Company in $9.7 Billion Deal

After a strong showing at AHA 2019, that included highlights from the ORION program showcasing the ability of inclisiran for use in lowering LDL-cholesterol and treating familial hypercholesterolemia, The Medicines Company is making headlines again.

In place of late-breaking data, the developer of the small interfering RNA therapy has entered into an agreement to be acquired by Novartis for $9.7 billion in a deal that will be completed in the first quarter of 2020.

“Our vision for inclisiran is an affordable, widely available treatment that will dramatically reduce both the medical and economic burden of cardiovascular disease,” said Alexander Denner, PhD, chairman of The Medicines Company Board of Directors. “Given the enormous capital required to realize its full potential, we have decided to sell to a company with resources and scale in excess of ours.”

Through the definitive agreement, which was unanimously approved by the Board of Directors of both companies, Novartis AG will acquire The Medicines Company at a price of $85 per share in an all-cash transaction. A release from The Medicines Company noted the $9.7 billion figure 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.

Until the completion of the transaction, which is expected in the first quarter of 2020, The Medicines Company will continue to operate as a separate and independent company.

The transaction itself is coming on the heels of multiple studies presented that suggested inclisiran could have a slew of uses and a legitimate place in the armamentarium of treatments available for cardiovascular conditions. Among these studies were findings from the phase 3 ORION-9, ORION-10, and ORION-11 studies which suggest inclisiran could be an effective treatment 3600 high-risk patients with ASCVD and familial hypercholesterolemia.

The release from the company noted regulatory submissions for inclisiran are expected to be infield in the fourth quarter of 2019 in the United States and during the first quarter of 2020 in Europe. The release also pointed out an ongoing clinical trial is evaluating the cardiovascular morbidity and mortality benefits of inclisiran.

More information on the results of the ORION-9 and ORION-10 trials—with insight from trial investigators—is available on our AHA 2019 conference coverage page.