The offer will be GBP10.50 ($19.53) in cash for each NeuTec Share, which values the existing issued share capital of NeuTec at approximately GBP305.1 million ($568 million). The boards of Novartis, subsidiary Novartis Pharma and NeuTec Pharma have reached agreement on the terms of the cash offer and NeuTec’s directors have revealed that they intend to recommend unanimously that NeuTec shareholders accept the offer.
The acquisition will give Novartis access to two promising biotech compounds with significant potential in high-growth markets with unmet medical needs. The first of these compounds, Mycograb, is an intravenous treatment for serious systemic fungal infections for use in combination with amphotericin B. It will be targeted at the systemicmycoses segment of the antifungal market.
The second compound, Aurograb, is an intravenous treatment for use in combination with vancomycin for the treatment of serious Staphylococcus aureus infections that will be used for hospital-acquired infections.
As NeuTec’s products are seen to be complementary and synergistic with Novartis’ existing specialist products across its immunology, antivirals, vaccines and transplant franchises, the Swiss pharma giant believes the acquisition will support its commitment to developing a world class infectious diseases portfolio.
The deal will also enable Novartis to further expand in the hospital segment by broadening its range of specialty medicines.