Novartis to acquire radio-pharma for $3.9B

Novartis has plans to buy France based Advanced Accelerator Applications (AAA) in a $3.9 billion cash deal to strengthen the oncology portfolio at the world's biggest maker of prescription medicine.

Novartis is seeking to add the company’s radiopharmaceuticals that use trace amounts of radioactive compounds to not only create functional images of organs and lesions but also to treat diseases like cancer.

AAA's flagship product, Lutathera, won European Union backing in late September for use against gastroenteropancreatic neuroendocrine tumours.

Lutathera, which has also been submitted to the U.S. Food and Drug Administration for approval, harnesses a molecule not only to diagnose cancer but also to deliver treatment by hitting cancer cells with high-energy electrons.

AAA was spun off from Europe's physics research centre CERN 15 years ago and had sales of $78 million in the first half of 2017, with a net loss from continuing operations of $24.2 million.

The Chief Executive at AAA, Stefano Buono stated that his company backed the deal, not only to support Lutathera's expanding launch but also to speed up development of its other therapies.