Novartis offers to buy NeuTec for £305 million

New York, June 7 - Novartis AG offered to buy NeuTec Pharma plc for £10.50, a total of £305 million.

The price is a 109% premium to the £5.03 close on June 5.

The acquisition would give Novartis two drugs for patients with severe infections, Mycograb an antibody fragment to be used with antifungals for treatment of invasive candida infections and Aurograb, an antibody fragment to be used with antibacterials for treatment of staphylococcus infections.

Mycograb has been submitted to European Union authorities while a Food and Drug Administration submission is planned for 2009. It has been granted orphan drug status by both sets of regulators. Submissions for Aurograb are planned for 2010.

Additional clinical trials will be conducted to further expand the potential of both therapies.

"Our proposed acquisition of NeuTec exemplifies our commitment to innovative medicines for severely ill patients," said Daniel Vasella, chairman and chief executive officer of Novartis, in a news release.

"In clinical trials, Mycograb has been shown to significantly lower the mortality of patients with severe fungal infections. Both Mycograb and Aurograb promise to dramatically improve the treatment possibilities in this area, and will also enable Novartis to strengthen its biologics pipeline and anti-infective drug portfolio."

The offer has been unanimously supported by NeuTec's board of directors and holders of 39% of the company's shares have indicated they intend to accept the offer.

Novartis is a Basel, Switzerland pharmaceutical company. NeuTec is based in Manchester, England.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.