Novartis passes 50% threshold in NeuTec buy

Swiss drug major Novartis says that it has purchased approximately 2.4 million shares, or 8.3%, of UK biopharmaceutical company NeuTec Pharma, as part of its strategy to acquire the company (Marketletter June 19). Novartis added that it had previously received valid acceptances for 43.5% of NeuTec's shares, and has now acquired a total of 15.1 million shares, or 52% of the firm.

NeuTec, which was formed in 1997 by James Burnie and Ruth Matthews and was listed on the London Stock Exchanges' Alternative Investments Market in February 2002, specializes in the development of recombinant antibodies, used for the treatment of life threatening infections. Novartis said that purchasing NeuTec would improve its access to the hospital anti-infectives sector, particularly in relation to the UK firm's already-marketed Mycograb and Aurograb products.

Novartis' offer, which remains subject to a 90% acceptance condition as well as other regulatory stipulations, has been extended to July 13. Early last month NeuTec's board of directors unanimously recommended acceptance of a L10.50 per share cash offer from the Swiss firm, which valued the UK company at approximately L305.0 million ($561.4 million).