Novartis Buys Cancer Diagnosis Specialist Genoptix For $470 Million
Swiss drugmaker Novartis is strengthening its personalized medicine and cancer portfolio with the $470 million buy of U.S. cancer diagnostics company Genoptix.
The deal, which comes after Novartis's $52 billion buy of U.S. eye care group Alcon shows Novartis still has the financial clout to clinch smaller deals as it seeks to drive growth in its five main units - pharmaceuticals, consumer health, eye care, generic drugs and vaccines and diagnostics.
The acquisition should boost Novartis's capacity to test and predict the efficacy of drugs tailored-made to individual patients' needs. This approach is becoming an ever more important way of treating patients, and is set to complement Novartis's cancer drugs business.
Genoptix, a laboratory specializing in diagnosing cancers in bone marrow, blood and lymph nodes, had sales of $184 million in 2009, has 500 staff and is profitable, Novartis said on Monday.
"We see this boost to the further development of individual tests - for predicting which drug fits to which patient - as making a lot of sense strategically," said Zuercher Kantonalbank analyst Michael Nawrath.
The Genoptix board is recommending Genoptix shareholders accept the offer of $25 per share, which represents a premium of 27% over Friday's closing price, Novartis said.
Novartis bought U.S.-listed eyecare group Alcon Inc for some $52 billion, helping it to diversify and protect it against patent losses on big-selling medicines such as blood pressure drug Diovan.
Investors also digested news that Novartis's multiple sclerosis drug Gilenya had won backing in Switzerland and Australia after the MS pill won a European recommendation on Friday.
