Advanced Accelerator Application SA (NASDAQ: AAAP) rose after Novartis announced plans to acquire Advanced Accelerator Applications for $3.9 billion.
The French-based conglomerate, a leader in nuclear medicine theragnostics, says Novartis proposes to make a cash tender offer to acquire all the outstanding shares of AAA, including shares represented by American Depositary Shares (the “ADSs”), for $41 per ordinary share and $82 per ADS (each representing two ordinary shares), in a transaction that is valued at approximately $3.9 billion.
This represents a 47% premium to the 30 volume-weighted trading days prior to the unaffected share price on NASDAQ on September 27
The deal is contingent on approval by AAA brass, who have mostly indicated support for the purchase.
CEO Stefano Buono, Chief Executive Officer of AAA, commented, "we have long felt (Novartis) would be an ideal partner, not only to enhance the launch of lutetium Lu 177 dotatate* (Lutathera®) for neuroendocrine tumors (NETs), but especially to accelerate the advancement of our unique oncology theragnostic platform.
"We believe that the combination of our expertise in radiopharmaceuticals and theragnostic strategy together with the global oncology experience and infrastructure of Novartis, provide the best prospects for our patients, physicians and employees, as well as the broader nuclear medicine community."
The company’s first theragnostic pairing for neuroendocrine tumors includes diagnostic drugs NETSPOT® in the US and SomaKit TOC™ in Europe; and therapeutic USAN: lutetium Lu 177 dotatate/INN: lutetium (177Lu) oxodotreotide (Lutathera®), which is approved for use in Europe and currently under review with the U.S. Food and Drug Administration.
The stock price went toward the stratosphere, breaking a new 52-week high at $80.44, towering over a 52-week gulch of $23.50.
