Novartis secures acquisitions of cardiovascular specialists, potentially inking a billion-dollar agreement.
Novartis, the Swiss pharmaceutical heavyweight, is boosting its cardiovascular meds arsenal with a potential blockbuster acquisition. The company is set to acquire US biotech firm Anthos Therapeutics for an initial $925 million, with further payments contingent on regulatory and sales milestones, making the deal worth a whopping $3 billion or so. The Boston-based Anthos has a promising anticoagulant, Abelacimab, in its late-stage pipeline.
The acquisition is in line with Novartis' strategy of focusing on cardiovascular, renal, and metabolic diseases, one of its four core pillars. Anthos, founded by private equity firm Blackstone with Novartis' backing in 2019, currently holds a small, undisclosed stake in the US biotech firm.
Abelacimab, Anthos' flagship drug, is an antibody designed to induce effective, bleeding-sparing anticoagulation through Factor XI inhibition. It is currently in Phase 3 trials for the prevention of stroke and systemic embolism in patients with atrial fibrillation.
A recent study showed promising results for Abelacimab in atrial fibrillation patients compared to rivaroxaban (Xarelto, by DAX company Bayer). Abelacimab resulted in fewer bleeding events in patients at risk, beating rivaroxaban in this realm.
While the acquisition didn't exactly set the stock market on fire, analysts have been reasonably cautious. Michael Kunz of Luzerner Kantonalbank points out that the purchase raises questions about Novartis' in-house research. Laurent Flamme of Zürcher Kantonalbank expresses doubts over achieving efficacy and acceptable bleeding rates.
However, the majority view the acquisition as strategic and beneficial for Novartis. Abelacimab has the potential to be a game-changer in managing high-risk patients with atrial fibrillation, thanks to its strong safety profile and efficacy in reducing bleeding complications. The acquisition is expected to enhance Novartis' cardiovascular pipeline by offering a safer anticoagulant alternative to current options.
Novartis' strategy of expanding in the field of cardiovascular, renal, and metabolic diseases through acquisitions and mergers is further evident with the proposed acquisition of Anthos Therapeutics. This deal, worth potentially over $3 billion, adds the promising anticoagulant Abelacimab to Novartis' portfolio, which could serve as a safer anticoagulant alternative in managing high-risk patients with atrial fibrillation.
