Novartis has entered into a Memorandum of Understanding to acquire Advanced Accelerator Applications (AAA), a nuclear medicine theragnostics company, in a transaction valued at approximately $3.9 billion. The proposed transaction has been approved by the AAA board of directors and Novartis, and is subject to customary transactional regulatory approvals.
 
Mr. Stefano Buono, chief executive officer of AAA, said, “It is with great satisfaction that we announce this proposed transaction with Novartis, who we have long felt would be an ideal partner, not only to enhance the launch of lutetium Lu 177 dotatate (Lutathera) for neuroendocrine tumors (NETs), but especially to accelerate the advancement of our unique oncology theragnostic platform. We recognize the value creation this proposed transaction provides for our shareholders, who have supported our growth over the past 15 years. We believe that the combination of our expertise in radiopharmaceuticals and theragnostic strategy together with the global oncology experience and infrastructure of Novartis, provide the best prospects for our patients, physicians and employees, as well as the broader nuclear medicine community.”

AAA recently received European approval for a marketing authorization for Lutathera for the treatment of unresectable or metastatic, progressive, well differentiated (G1 and G2), somatostatin receptor positive gastroenteropancreatic neuroendocrine tumors (GEP-NETs) in adults. A New Drug Application is currently under review by the U.S. FDA, with a Prescription Drug User Fee Act (PDUFA) action date of January 26, 2018.