Novo Nordisk shares are trading lower, Monday as the Danish drug maker has announced it’s made a bid for Belgian biotech business, Ablynx. Novo Nordisk, the world’s biggest insulin maker, is seeking to diversify its product offerings in a competitive market.
By 1215 BST, Novo Nordisk shares were 0.12% lower at DK339.60. Ablynx shares were 3.01% higher at €21.20.
Novo Nordisk announces bid
Novo Nordisk, who has made previously unsuccessful bids for the Belgian business, announced its €2.6 billion offer on its website, Monday.
"The proposed transaction with Ablynx represents a compelling opportunity for both companies and is in the best interests of all of Ablynx's stakeholders", said Lars Fruergaard Jørgensen, chief executive officer of Novo Nordisk.
“At this stage, there can be no assurance that any agreement with respect to the proposed transaction will be reached between the two companies,” Jørgensen said.
“Novo Nordisk's proposal to Ablynx's Board of Directors is subject to satisfactory completion of due diligence and the negotiation, execution and delivery of a mutually acceptable definitive transaction agreement,” Jørgensen added.
The bid was made on December 22 and consists of an initial €28 per share offer, plus an additional €2.50 per share in contingent value rights. That represents a 60% premium from when Novo made its initial offer in early December.
“Novo Nordisk encourages Ablynx's Board of Directors to engage in a negotiated transaction for the benefit of all stakeholders,” Jørgensen said.
Proposed deal in vogue
The offer from Novo Nordisk to buy Ablynx comes when other drug makers appear to be searching out ways to increase their potential product offerings.
Last week Japanese drug maker, Takeda Pharmaceutical agreed a deal to buy TiGenix, a Belgian biotech firm. Meanwhile, U.S.-based business Celgene, announced Sunday it will purchase Impact Biomedicines.
Novo Nordisk stated in its announcement, meanwhile, that it values Ablynx’s existing assets and furture plans too. And, as such, will continue to invest in the Ablynx assets and support existing partnerships it has built.