Novartis AG is considering selling part of radiopharmaceuticals company Advanced Accelerator Applications, people with knowledge of the matter said, as it joins an industry-wide push to cast off low-growth business lines.
(Bloomberg) — Novartis AG is considering selling part of radiopharmaceuticals company Advanced Accelerator Applications, people with knowledge of the matter said, as it joins an industry-wide push to cast off low-growth business lines.
The Swiss drugmaker is in the early stages of exploring a sale of some of AAA’s diagnostic imaging assets, according to the people, who asked not to be identified discussing confidential information.
Deliberations are ongoing and there’s no certainty they’ll result in any transaction, the people said. A representative for Novartis declined to comment.
AAA makes radioactive drugs used to treat diseases including cancer. It also offers molecular imaging for helping to diagnose cancers, cardiovascular and neurological disorders in the early stages.
Under Chief Executive Officer Vas Narasimhan, Novartis has joined an industry-wide push to cast off low-growth businesses and focus on growth areas like rare diseases.
The drugmaker agreed in June to sell part of its portfolio of eye medicines to Bausch + Lomb Corp. in a deal worth as much as $2.5 billion. It also bought Chinook Therapeutics Inc. for as much as $3.5 billion earlier this year to add two promising treatments in advanced tests for a rare kidney disease.
AAA was founded in 2002 as a spinoff of the European Organization for Nuclear Research, or CERN. Novartis agreed to acquire the company for about $3.9 billion in 2017.
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