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.

CHEManager Spotlight

Standardization and Harmonization of Digital Chemical and Pharmaceutical Logistics
Creating Interfaces

Standardization and Harmonization of Digital Chemical and Pharmaceutical Logistics

CHEManager Spotlight is an exclusive event tailored for practitioners and decision-makers in the chemical industry. This part of our event series delves into the latest trends and innovations in logistics to streamline your operations and drive efficiency.

Interview

Specialty Chemicals in a Shifting World
Adapting to Tariffs and Strengthening Regional Networks

Specialty Chemicals in a Shifting World

Jennifer Abril, President & CEO of SOCMA, discusses the impact of new tariffs and the importance of regional supply networks in the specialty chemical industry.