Novartis ‘passes 50 per cent acceptance mark for NeuTec’

Novartis, the Swiss pharmaceuticals company, has revealed that it has purchased 8.3 per cent of the outstanding share capital of NeuTec, the Manchester-based biopharmaceuticals company.

In addition, it also said it had received acceptance from approximately 52 per cent of NeuTec shareholders. Novartis needs to reach 90 per cent to close the deal by July 13th.

NeuTec manufactures genetically recombinant antibodies, known as grabs. It currently has two products undergoing completion – Mycograb, a treatment for systemic candidiasis (a potentially life-threatening disease), and Aurograb, a drug designed for targeting the staphylococcus aureus, the bacteria responsible for MRSA.

Dr Daniel Vasella, chairman and chief executive officer, stated: “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 added.

NeuTec, formed by two professors in 1997, has recommended the offer to its shareholders. The company employs 23 people and was listed on the stock exchange in 2002.

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