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Novartis will pay $85 per share in cash, valuing the company at about $9.7 billion. The company said its offer represents a 41 percent premium over The Medicines Company's 30-day volume. Each company's respective board of directors has unanimously approved the deal.
The Medicines Company is developing inclisiran, a cholesterol-lowering therapy. The company recently said its clinical trials have showed positive results and it's preparing to file regulatory paperwork in the U.S. and Europe for the treatment.
Novartis said the acquisition will broaden its cardiovascular portfolio, helping it grow in the U.S. and globally.
Vas Narasimhan, Novartis' CEO, called inclisiran "a potentially transformational medicine that reimagines the treatment" of certain heart conditions.
"With tens of millions of patients at higher risk of cardiovascular events ... we believe that inclisiran could contribute significantly to improved patient outcomes and help heathcare systems address the leading cause of death," Narasimhan said in a press release.
The deal is expected to close in the first quarter of 2020.