Swiss drugmaker owns Gene therapy company AveXis for $8.7 billion revealed on Monday. The deal is expected to be completed in mid 2018.
Narasimhan is counting on AveXis’s main SMA drug, AVXS-101, as well as its gene therapy expertise and manufacturing capabilities to bolster Novartis’s neuroscience business, one of the Swiss company’s main focus areas.
Due to research and development costs, it can be possible the income in 2018 and 2019 would hurt slightly. Swiss drugmaker Novartis said that it will acquire a Chicago-based gene therapy company that has been working on a new treatment for infants in an $8.7 billion deal.
The acquisition of AveXis would give Novartis a broader stake in the evolving field of gene therapy. This is aimed at finding treatments for rare and life-threatening neurological genetic diseases.
“The acquisition would also accelerate our strategy to pursue intended result, first-in-class therapies and broaden our leadership in neuroscience,” said Novartis CEO Vas Narasimhan in a statement.
AveXis is working on treatment of spinal muscular atrophy. The neurodegenerative disease in infants either kills nine of 10 babies before their second birthday. Narasimhan called AveXis’ treatment presents “an extraordinary opportunity to create a “lifetime of opportunities.”
Narasimhan said the total patient population for SMA is 23,500 people in established markets, said he plans to use proceeds from the GSK transaction to help pay for AveXis, which is based in Illinois.