French nuclear meds specialist AAA agrees to $3.9 billion acquisition

Shares of France-based Advanced Accelerator Applications (AAA; Nasdaq: AAAP) moved up 5.68% and a further 2.88% to $75.1012 in after-hours trading on Friday, ahead of the confirmation that is has received a takeover approach, which its board of directors had agreed to.

Swiss pharma giant Novartis (NOVN: VX) is proposing to commence a tender offer for 100% of the share capital of AAA subject to certain conditions, at a price of $41 per ordinary share of AAA and $82 per American Depositary Share (each representing 2 ordinary shares of AAA) subject to certain conditions. This offer values AAA's equity at $3.9 billion.

AAA is a radiopharmaceutical company that develops, produces and commercializes molecular nuclear medicines including Lutathera (Lutetium Lu 177 dotatate), a first-in-class RLT product for neuroendocrine tumors (NETs). Radiopharmaceuticals, such as Lutathera, are unique medicinal formulations containing radioisotopes which are used clinically for both diagnosis and therapy. The transaction would strengthen Novartis' oncology presence with both near-term product launches as well as a new technology platform with potential applications across a number of oncology early development programs.