Novartis to Acquire Regulus Therapeutics for up to $17 Billion

Novartis, a leading Swiss pharmaceutical company, has announced its plans to acquire regulus therapeutics inc., a U.S.-based biotechnology firm, in a deal that could be worth up to $17 billion. The acquisition, which is set to be completed by the second half of 2025, will be carried out through a novartis subsidiary. This subsidiary will pay $8 billion in cash upfront, at a price of $7 per share. Additionally, shareholders of regulus therapeutics will receive a contingent value right (CVR) that could add up to $9 billion if the drug farabursen, developed to treat autosomal dominant polycystic kidney disease (ADPKD), receives regulatory approval. ADPKD is the most common genetic cause of kidney failure.

Novartis' Chief Financial Officer, Harry Kirsch, highlighted the company's proactive approach to seeking acquisition opportunities to boost sales beyond 2025. He also noted the downward trend in valuations within the biotechnology sector. Regulus Therapeutics specializes in developing therapies that target microRNAs, molecules that regulate cellular functions. The company's CEO, Jay Hagan, expressed confidence that Novartis' robust global research and commercialization capabilities will help bring Regulus Therapeutics' core product, farabursen, to market successfully.

The acquisition has already received approval from the boards of both companies. This strategic move by Novartis underscores its commitment to expanding its portfolio in the biotechnology sector, particularly in areas related to genetic diseases and innovative therapeutic approaches. The deal highlights Novartis' proactive approach to leveraging external innovation to drive future growth and maintain its leadership position in the pharmaceutical industry.