Under the merger, Novartis will pay $85 per share, a premium of approximately 45% of The Medicines Co.’s closing share price of $58.65 on Friday. Once the deal has closed, a Novartis subsidiary will merge with The Medicines Co.
“Our company’s singular, relentless focus and the unwavering commitment of our employees have led to this opportunity to unlock the intrinsic value of inclisiran (a drug meant to lower cholesterol) for patients and to maximize value for our shareholders,” Mark Timney, CEO of The Medicines Co., said. “We are excited that millions of patients with atherosclerotic cardiovascular disease and familial hypercholesterolemia will potentially benefit from this transformational therapy.”
The deal is expected to close in the first quarter of 2020. Until then, The Medicines Co. will continue to operate as a separate and independent entity.
“This $9.7 billion transaction is a great outcome for shareholders of The Medicines Company. Not so long ago, The Medicines Company was at a crossroads due to the loss of its key revenue driver. I am proud of the company’s transformation under a reconstituted board into a lean, highly focused team successfully advancing an exciting new therapy and creating tremendous value for patients and shareholders,” Alexander J. Denner, chairman of the board of directors at The Medicines Co., said.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC will act as financial advisers and Paul, Weiss, Rifkind, Wharton & Garrison LLP will act as legal counsel for The Medicines Co.