Novartis, a multinational pharmaceutical corporation based in Switzerland has agreed to acquire Anthos Therapeutics, a transformative, clinical-stage biopharmaceutical company. Major investors in Anthos Therapeutics (AT) include BXLS and other partners such as Novo Holdings. AT developed abelacimab, a ‘potential first-in-class monoclonal antibody targeting the FXI inhibition pathway’, currently in phase-3 development, with a potential breakthrough for stroke and blood clot prevention. Novartis bought the company from Blackstone Life Sciences for $3.1bn. This is a private investment platform with $12bn assets under management and an ambition to bring new medicines and medical technologies into the market. The financial advisors that worked on this deal were Morgan Stanley and Goldman Sachs and the deal is expected to close in the first half of 2025.
After the deal was announced on February 11th, 2025, Norvatis’ share price target reached $140.50, which is a 31.5% increase from current levels. Their current 52-week range of their share price is $92-$120. Recently, they hit a record-high free cash flow of $16.3bn, up 24%, which reflects their focus on pharmaceuticals and hints at room for more growth after the deal closes. Interestingly, Blackstone Life Sciences had originally licensed the abelacimab drug in 2019, spending over $250mn in clinical trials investment. This conveys that Norvatis wants to regain full control of the drug, now that it has reached a later stage in its development.
Not only does this deal align with Norvatis’ growth strategy but it helps strengthen its therapeutic area focus and capitalise on the target's strong cardiovascular disease prevention offerings. Norvatis’ chief medical officer stated ‘“We are excited to join forces to advance the development of abelacimab, a potential first-in-class treatment and safer approach for stroke prevention in atrial fibrillation as well as cancer-associated thrombosis’’. This quote reflects the patient-centred nature of this deal, with the two firms collaborating to fight heart disease and complementing Norvatis' clinical programs. The US Food and Drug Administration granted fast-track status to the antibody in July 2022 for the treatment of thrombosis associated with cancer.
As part of the deal terms, $925mn was paid upfront with additional payments contingent on regulatory and sales milestones. This is similar to many deals currently in the healthcare space, where potential profit is subject to regulatory restrictions that involve the advancement of new products and solutions.
Overall, this deal should transform Norvatis’ portfolio of life-changing treatments with a focus on the cardiovascular space.
Sources: Merger Links, Pharmaceutical Technology, Norvatis, Goodwin, YahooFinance
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