NVS - Why Novartis's $9.7 Billion Purchase of The Medicines Company Is Bad News for Amgen
Swiss drugmaker Novartis's (NYSE: NVS) $9.7 billion takeover of The Medicines Company (NASDAQ: MDCO) gives the former ownership of an investigational cardiovascular drug called inclisiran. And that may mean trouble for Amgen (NASDAQ: AMGN) and its heart drug Repatha, which hasn't lived up to blockbuster hopes.
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The Medicines Company plans to apply for FDA approval of inclisiran in the fourth quarter. If the drug is approved, powerhouse Novartis will be in the driver's seat, ready to market the treatment. Amgen's Repatha already competes with Praluent, sold by Sanofi (NASDAQ: SNY) and Regeneron (NASDAQ: REGN), but this possible new addition to the market offers a greater threat because of Novartis' size and global reach. Management at Novartis, which has $51.9 billion in annual sales, said the product could become one of its largest sellers. The drugmaker was willing to pay a 41% premium over The Medicines Company's share price to gain access to it.