Shares of Advanced Accelerator Application SA (NASDAQ:AAAP), a manufacturer of tracers used for medical imaging, rose 19.8% in October according to data from S&P Global Market Intelligence. A tender offer from Swiss pharma giant, Novartis (NYSE:NVS) was the catalyst.
Advanced Accelerator Applications hasn't received much attention since spinning off from the European Organization for Nuclear Research (CERN) in 2002, but the company has quietly built a leadership position in the burgeoning niche for radioactive markers. Novartis offered $82 per American depositary share, which works out to $41 per ordinary share or a grand total around $3.9 billion for the company.
Advanced Accelerator has maintained a low profile over the years. The 47% premium Novartis offered the company last month seems awfully steep for a company that reported just $41.7 million in total revenue during the second quarter and lost $11.3 during the three month period. It's important to point out second-quarter sales came in 32% higher than the previous year period and the stage is set for more growth ahead.
At the end of September, the European Commission approved a marketing application for Lutathera, a radioactive molecule that targets specific receptors found on the surface of neuroendocrine tumor cells. The FDA is expected to issue an approval decision regarding Lutathera in late January.