AveXis, Inc. (NASDAQ: AVXS) surged Monday after the company agreed to be acquired by Novartis AG (NYSE: NVS).
The Chicago-based AveXis announced today that it has entered into an agreement and plan of merger with Novartis pursuant to which Novartis will acquire AveXis for $218 per share or a total of $8.7 billion in cash.
This offer represents a premium of 88% to AveXis’ closing price on April 6, and a 72% premium to the company's 30-day volume-weighted average stock price. The transaction was unanimously approved by the Boards of Directors of both companies.
AveXis CEO Sean Nolan said, “The commitment, drive and expertise of the entire AveXis team has created significant stockholder value, and we are pleased that Novartis recognizes that value in the potential of AVXS-101, our first in class manufacturing capabilities and our gene therapy pipeline, all of which serve to transform the lives of people devastated by rare and life threatening neurological diseases such as SMA, Rett syndrome and genetic ALS.
"With worldwide reach and extensive resources, Novartis should expedite our shared vision of bringing gene therapy to these patient communities across the globe as quickly and safely as possible."
Novartis plans a smooth transition of AveXis operations and the integration of AveXis’ talented and dedicated employees into the Novartis organization to continue the mission of bringing AVXS-101 to patients worldwide.
Completion of the transaction is expected in mid-2018, pending the successful completion of the tender offer and all other closing conditions.
AveXis shares galloped $89.64, or 77.3%, to $205.55, while Novartis shares gained 79 cents, or nearly 1%, to $80.99
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