Novartis Pays $880M For Speedel And A Key Drug
Make a commentBy Ed Silverman // July 10th, 2008 // 6:50 am
How do you to resolve a dispute with a company that has a drug you want? Buy them. And so Novartis, which needs a follow-up to its best-selling Diovan blood pressure med, is acquiring a controlling interest in a small company that sells such a pill called Tekturna.
The drugmaker already had a 10 percent stake in Speedel, and is adding 51 percent by purchasing shares from several large holders, including former Novartis researcher Alice Huxley, who founded the company 10 years ago and licensed rights to Tekturna to her former employer. But the two companies recently began bickering over Tekturna’s surprisingly meager sales, which helped drive Speedel’s stock price down considerably.
Huxley claimed Novartis backpeddled on marketing as part of its current cost-cutting drive and that Tekturna has been concentrated only on specialist doctors. She also alleged Novartis was unwilling to divulge sales data or accept independent audits of Tekturna’s performance, according to The Financial Times. Given recent circumstances, though, Huxley chose to sell.
“In light of the currently very challenging environment for Speedel, i.e. the upcoming financing needs and the depressed market sentiment, I have agreed to a solution which promises a solid fundament for the future of Speedel, and further investments in the company’s successful research and clinical development programs,” Huxley says in a statement.
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Tags
Alice Huxley, Diovan, Novartis, Speedel, Tekturna