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Novartis: to acquire radiopharmaceutical firm.

(CercleFinance.com) - Novartis has entered a memorandum of understanding with Advanced Accelerator Applications (AAA) in a deal valuing the radiopharmaceutical company at 3.
9 billion dollars.

The Swiss firm intends to initiate a tender offer for 100% of the share capital of AAA, offering 41 dollars in cash for each share and 82 dollars for each American Depositary Share (ADS).

Novartis said the transaction would strengthen its presence in oncology, considering that AAA makes molecular nuclear medicines including Lutathera, a product for neuroendocrine tumors.

In addition to Lutathera, AAA will also bring a set of radiopharmaceutical products, including companion diagnostics for Lutathera. AAA had sales of 109 million euros in 2016.

"This is a small bolt-on deal that is somewhat complimentary to its oncology platform although the valuation appears rich, on 8x Bloomberg consensus 2020 revenues," analysts at Liberum said.

Novaris also said on Monday that it planned to present new evidence for Cosentyx on potential to maintain mobility in patients with ankylosing spondylitis (AS) and psoriatic arthritis (PsA) at 2017 ACR/ARHP annual meeting, that will start later this week.

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