As per the terms of the deal, Novartis has offered to buy the US-based biopharmaceutical company for $85.00 per share in cash.
Headquartered in Parsippany, New Jersey, The Medicines Company focuses on developing drugs for cardiovascular disease. The company stated that its goal is to stop the deadly progression of atherosclerosis and the cardiovascular risk resulting from high levels of LDL-C, or bad cholesterol.
The Medicines Company had recently reported positive results for inclisiran from a phase 3 clinical programme made up of the ORION-9, 10 and 11 trials. In all the three trials that were held in patients with atherosclerotic cardiovascular disease (ASCVD) and familial hypercholesterolemia (FH), inclisiran delivered potent and durable reduction of LDL-C.
The late-stage trials, which featured more than 3,600 high-risk patients, showed an excellent safety and tolerability profile for the investigational cholesterol-lowering drug, said Novartis.
Novartis CEO Vas Narasimhan said: “With tens of millions of patients at higher risk of cardiovascular events from high LDL-C, we believe that inclisiran could contribute significantly to improved patient outcomes and help healthcare systems address the leading global cause of death.
“The prospect of bringing inclisiran to patients also fits with our overall strategy to transform Novartis into a focused medicines company and adds an investigational therapy with the potential to be a significant driver of Novartis’ growth in the medium to long term.”
Inclisiran is a siRNA inhibitor designed to target the PCSK9 enzyme. It is said to have the potential to fundamentally transform the treatment of increased LDL-C in high risk patients.
The Medicines Company is likely to file regulatory submissions in the US in the fourth quarter of 2019 and in Europe in the immediate next quarter. According to Novartis, inclisiran gives it a near-term product launch opportunity and is likely to contribute to its group sales from 2021.
The Medicines Company CEO Mark Timney said: “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 for patients and to maximize value for our shareholders.
“We are excited that millions of patients with atherosclerotic cardiovascular disease and familial hypercholesterolemia will potentially benefit from this transformational therapy.”
The acquisition, which will be subject to the satisfaction or waiver of all closing conditions, is expected to be completed in the first quarter of 2020.