Novartis Acquires AveXis, Gene Therapy Platform for $8.7 Billion

April 13, 2018: By Jon Swedien

Novartis has entered an agreement to acquire AveXis and its gene therapy platform for $8.7 billion.

AveXis’ lead drug candidate, AVXS-101, has the potential to be first-ever one-time gene replacement therapy for spinal muscular atrophy. Novartis believes the acquisition can also help it advance its gene therapy capabilities more generally.

“We have a robust internal portfolio of gene therapies in ophthalmology and neuroscience in Novartis Institutes for Biomedical Research,” Novartis CEO Vas Narasimhan told Reuters. “And we look forward to using AveXis’ capabilities and technical development capabilities to be able to advance that portfolio.”

The boards of both companies each unanimously approved the transaction. Novartis agreed to pay $218 per share. The deal is expected to close in mid-2018, Novartis said.

This is Novartis’ second deal for a gene therapy this year. In February, Novartis struck a licensing deal to develop and commercialize Spark Therapeutics’ gene therapy, voretigene neparvovec, outside the US. That deal is potentially worth more than $170 million, according to Spark. Voretigene neparvovec is an FDA-approved treatment for retinal dystrophies caused by mutations in the RPE65 gene.

Novartis had cash on hand after selling its stake in a consumer health care joint venture with GlaxoSmithKline for $13 billion in March.

Need Deeper Analysis? Sign up for Market Scope's monthly newsletter to get in-depth coverage of the ophthalmic market, including quarterly procedure volumes based on survey data and meeting coverage from around the world.

Recent Ophthalmic News

Ivantis Gains US FDA Approval for Hydrus Microstent

US FDA Approves Sun Pharma’s CEQUA for Dry Eye

Regeneron Receives US FDA Approval for 12-Week Eylea Dosing

STAAR, Japan’s Shinjuku LASIK Clinic Sign Multiyear Agreement

Alcon Launches Finesse Sharkskin ILM Forceps

Imprimis’ Q2-2018 Revenues Increase 51 Percent to $10.4 Million

Bausch Health Revenues in Q2-2018 Drop 5 Percent

TearLab’s Q2-2018 Revenues Drop 8.5 Percent to $6.4 Million

DeepMind AI System Accurately Detects Eye Disease in OCT Scans at Moorfields

Study by MIT, Mass Eye and Ear Suggests Glaucoma is Autoimmune Disease

Study Indicates Insulin May Restore Vision in Glaucoma

CHOP Researchers Define Six ROP Indicators

Nicox Initiates Phase II Study of NCX 470 in Open-Angle Glaucoma, Ocular Hypertension

Eyenovia’s Microdose Latanoprost Delivers Drug with Precision, Lowers IOP in Proof-of-Concept Study

Rayner to Launch Sulcoflex Trifocal Toric IOL in September

CMS Allows Medicare Advantage Plans to Apply Step Therapy to Retinal Injections

Glaukos Reports Drug Collaboration with D. Western, Q2-2018 Net Sales Increase of 5 Percent

Allergan Will Co-develop Editas’ CRISPR Genome Editing Candidate for LCA10

Spark Reports Q2-2018 Net Sales of $4.3 Million for Luxturna

Aerie’s Rhopressa Posts $2.4 Million in Net Revenues in Q2-2018

Coming soon

2018 Ophthalmic Laser Report: A Global Market Analysis for 2017 to 2023 (Photocoagulation, Photodisruption, and SLT