The Strategist

Novartis to pay up to $ 665 million for US lab Selexys Pharmaceuticals

11/21/2016 - 14:08

Swiss pharmaceutical giant Novartis announced purchase of American research laboratory Selexys Pharmaceuticals, which deals with diseases of the circulatory system and inflammatory processes. The lab specializes in sickle-cell anemia, a hereditary disease. As reported by AFP, the transaction amount can amount to $ 665 million (€ 627 million).

Andrew Hecht
Andrew Hecht
Novartis agreed to buy the lab after examining results of its development - SelG1, analgesic medications for patients with sickle cell disease. Bruno Strigini, CEO of Novartis Oncology Unit said that sickle cell anemia is a common disease, it affects millions of people around the world, yet there too few medicaments to treat concomitant of vaso-occlusive crises.

The deal will strengthen position of Novartis in the market of sickle-cell therapy drugs. Experts predict that if the new drug receives approval, the manufacturer will be able to set a high price on the drug as it will be in great demand because of wide spread of the disease.

Previously, Novartis announced a fall in net profit for the III quarter of 2016 by 4% due to continuing decline in sales of anti-cancer drug Gleevec. The slump occurred after patent for the drug expired. No less significant role was played by the company's efforts to revive fading business in Alcon’s ophthalmic division.

The company's net profit fell to $ 2.938 billion against average analyst estimate of $ 2.9 billion in Reuters’ poll.

Sales decreased by 1% to $ 12.1 billion compared to forecast of $ 12.25 billion.

Executive Director of the Novartis Joe Jimenez said the company’s new anti- psoriasis drug Cosentyx helps offset a dip in sales of Gleevec. The medication has already become a bestseller after overcoming the mark of $ 1 billion this year. 

Jimenez confirmed that forecast for underlying operating profit for 2016 as a whole will coincide with the previous year, or may show a decrease by 1-3%. As expected, overall sales will coincide with the last year's figures.