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--Andrew- via flickr
"Novartis announces that it has entered into an agreement and a merger plan with AveXis regarding the acquisition of the latter for $ 8.7 billion," Novartis said.
At the close of trading on Friday at the Nasdaq exchange, the AveXis price was at $ 115.91 per share. Thus, the transaction price is almost 2 times higher than the market price.
The boards of directors of both companies have already approved the deal. Its completion is expected by the middle of the year. Under the deal, Novartis will create a subsidiary of Novartis AM Merger Corporation, which will acquire AveXis shares from the market. Then the subsidiary and AveXis will be merged into one company.
"The impact of the transaction will have a slight negative effect on the main operating income in 2018 and 2019... Since 2020, Novartis expects that the effect of the transaction will positively affect the company's revenues, as a result of the expected significant increase in sales," – the company said in a press release.
As Novartis head Vasant Narasimhan added, the deal will be partially financed by the sale of a stake in one of the company's joint ventures. In late March, Novartis agreed to sell 36.5% of the joint venture with the British GlaxoSmithKline for $ 13 billion.
AveXis is developing drugs for the treatment of rare types of neurodegenerative diseases. The company cooperates with the National Children's Hospital in Columbus (Ohio, USA) and its research institute and other companies involved in gene therapy.
source: ft.com
At the close of trading on Friday at the Nasdaq exchange, the AveXis price was at $ 115.91 per share. Thus, the transaction price is almost 2 times higher than the market price.
The boards of directors of both companies have already approved the deal. Its completion is expected by the middle of the year. Under the deal, Novartis will create a subsidiary of Novartis AM Merger Corporation, which will acquire AveXis shares from the market. Then the subsidiary and AveXis will be merged into one company.
"The impact of the transaction will have a slight negative effect on the main operating income in 2018 and 2019... Since 2020, Novartis expects that the effect of the transaction will positively affect the company's revenues, as a result of the expected significant increase in sales," – the company said in a press release.
As Novartis head Vasant Narasimhan added, the deal will be partially financed by the sale of a stake in one of the company's joint ventures. In late March, Novartis agreed to sell 36.5% of the joint venture with the British GlaxoSmithKline for $ 13 billion.
AveXis is developing drugs for the treatment of rare types of neurodegenerative diseases. The company cooperates with the National Children's Hospital in Columbus (Ohio, USA) and its research institute and other companies involved in gene therapy.
source: ft.com
