The Medicines Company (NASDAQ:MDCO) is seeing MDCO stock flying high Monday on news of a deal with Novartis (NYSE:NVS).
The Medicines Company news is that Novartis is planning to acquire the company. This will have it paying out $85 per share in cash for MDCO stock. That has it spending $9.70 billion to bring the company into its fold.
The offer price of $85 per share is also great The Medicines Company news for holders of MDCO stock. It is roughly 45% higher than the stock’s price prior to news of a possible deal. It’s also 57% premium compared to the stock’s unaffected one-week average price.
Alexander Denner, Chairman of MDCO’s Board of Directors, says this about The Medicines Company news.
“Not so long ago, The Medicines Company was at a crossroads due to the loss of its key revenue driver. I am proud of the company’s transformation under a reconstituted board into a lean, highly focused team successfully advancing an exciting new therapy and creating tremendous value for patients and shareholders.”
Novartis will be using a cash tender offer to buy all outstanding shares of MDCO stock. Once this is complete, The Medicines Company will merge with a wholly-owned subsidiary of Novartis AG.
So long as everything goes well, The Medicines Company new release notes that it is expecting the deal to close during the first quarter of 2020. The deal still needs to complete customary closing conditions.
MDCO stock was up 22.34% and NVS stock was up close to 1% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.