Novartis expands in gene therapy and neuroscience with $8.7 billion acquisition

Flush with cash following the $13 billion sale of its consumer health joint venture stake, Swiss pharma giant Novartis (NOVN: VX) has announced a significant acquisition to expand its gene therapy and neuroscience business.

Novartis has reached an agreement and plan of merger with AveXis (Nasdaq: AVXS) to acquire the US-based clinical stage gene therapy company AveXis for $218 per share or a total of $8.7 billion in cash. AveXis shares closed down 3.o9% at $115.91 on Friday. Novartis’s shares rose 0.75% to 78.26 Swiss francs at 10.40 am in Zurich trading.

This offer represents a premium of 88% to AveXis’ closing price on April 6, 2018, and a 72% premium to the company's 30-day volume-weighted average stock price, according to the US company. The transaction, which is expected to close mid-2018, was unanimously approved by the boards of directors of both companies.