Avexis, which is commercialising research from Ohio State University and Nationwide Children's Hospital, has been acquired by Novartis for $8.7bn.
Avexis, a US-based neurological disease treatment developer commercialising Ohio State University (OSU) research, completed an acquisition deal today with pharmaceutical firm Novartis for $8.7bn.
The acquisition was first announced last month, when OSU revealed its remaining stake in the business was worth approximately $2.7m. Avexis has ceased trading on the Nasdaq Global Select Market and has become an indirect, wholly-owned subsidiary of Novartis.
Avexis is working on gene therapy treatments for rare and potentially fatal neurological genetic diseases, including a form of spinal muscular atrophy that is the leading genetic cause of infant mortality.
The company licensed research from OSU and Nationwide Children’s Hospital in 2013 and was obligated to maintain a 3% stake for both until May 2015 as part of that deal.
The company went public in 2016, raising $95m in its initial public offering. It had previously raised approximately $82.5m in equity funding.
Roche Venture Fund, the investment arm of pharmaceutical firm Roche, backed $65m series D in September 2015, investing alongside T. Rowe Price, Deerfield Management, Boxer Capital, Venrock, Janus Capital Management, Adage Capital Management, RA Capital Management, QVT Financial, Rock Springs Capital Management, Foresite Capital Management and RTW Investments.
Roche Venture Fund and Deerfield Management had previously co-led a $10m series C round in January 2015.
Vas Narasimhan, chief executive of Novartis, said: “We are delighted to add Avexis’ leading gene therapy technology to our company and to welcome our Avexis colleagues to Novartis.
“Together, we now have the potential to bring to children the first one-time gene-based treatment for the devastating disease, spinal muscular atrophy.
“The deal also supports our strategy to deliver transformative innovation in areas of high unmet medical need, and advances our growing pipeline of gene therapies with the potential to transform the care of diseases, from SMA and cancer to blindness.”
