Novartis bids $470M for US cancer diagnostic firm

GENEVA (AP) - Swiss drug maker Novartis AG said Monday it is paying $470 million to acquire U.S. cancer diagnostic specialist Genoptix Inc.

Novartis will pay $25 per share to acquire all of the Carlsbad, California-based company's outstanding stock.

The price represents a 39 percent premium over Genoptix's share value on Dec. 13, 2010, when rumors of a sale sparked a price surge, Novartis said in a statement.

Analysts at Zuercher Kantonalbank said the takeover was "strategically very sensible." Novartis shares dipped 0.1 percent in early trading on the Zurich exchange.

Novartis CEO Joseph Jimenez was quoted as saying the acquisition of Genoptix would help the Basel-based pharma giant expand its individualized cancer treatment programs.

Genoptix specializes in diagnosing cancers in bone marrow, blood and lymph nodes. It had sales of $148 million during the first nine months last year.

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