Novartis set to acquire UK biotech company

Novartis has announced it has made an offer for Manchester-based NeuTec Pharma for approximately 305 million pounds at a 109 per cent premium of the standard share price.

NeuTec’s board has accepted the offer unanimously, describing it as “fair and reasonable”, as well as major shareholders owning 39 per cent of the company. Novartis said it hopes to expand its entry into the anti-infectives market for difficult-to-cure diseases. The Swiss pharmaceutical company will acquire NeuTec’s monoclonal antibody drugs: Mycograb, for the treatment of invasive yeast infections, and Aurograb, to be used in conjunction with antibiotics for Staphylococcus infections.

Daniel Vasella, Novartis chairman and chief executive, said: “Our proposed acquisition of NeuTec exemplifies our commitment to innovative medicines for severely ill patients.

“In clinical trials, Mycograb has been shown to significantly lower the mortality of patients with severe fungal infections.”

“Both Mycograb and Aurograb promise to dramatically improve the treatment possibilities in this area, and will also enable Novartis to strengthen its biologics pipeline and anti-infective drug portfolio,” he concluded.

Professor James Burnie, co-founder and chief executive officer of NeuTec, said that Novartis would help its drugs achieve a greater impact in areas of unmet medical need.

NeuTec has two locations in Manchester and employs 23 people.

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