AveXis M&A: Why Did Novartis Go For It?

12:26 am ET, 10 Apr 2018

AveXis (NASDAQ: AVXS) witnessed a surge of more than 80% in its stock price today. This Illinois-based biotech company involved in clinical stage gene therapy is pursued by the Swiss drugmaker Novartis.  

Novartis is buying AveXis for $8.7 Billion. Through this acquisition, Novartis is adding a treatment for a rare disease that can successfully generate a huge amount of sales.  

This is an all-cash deal, valued at $218 per-share. It constitutes a 72% premium to the 30-day volume-weighted average stock price of AveXis.

Vas Narasimhan, Novartis CEO sold the company's stake to GlaxoSmithKline for $13 billion. He aims to boost Novartis' neuroscience business by focussing on AveXis' AVXS-101 drug, its expertise in gene therapy and manufacturing skills. 

AVXS-101 is AveXis' main drug that can be used for the treatment of Spinal Muscular Atrophy (SMA). It is designated in the US as a breakthrough therapy and will be submitted to the regulators this year. The nervous system which controls the movement of voluntary muscles is affected by SMA. The condition generally affects young children, causing their death on occasions.

AVXS-101 operates by replacing the faulty genes. This treatment is known to have caused significant improvement in the motor nerve among the children.

$363 million was generated in the fourth quarter of 2017 from the existing SMA treatments, approved in 2016. This figure includes Biogen’s and Ionis' RNA-splicing Spinraza and the therapies that are being developed by Roche and Cytokinetics.

AveXis technical skills would be used to enhance Novartis' internal portfolio. The portfolio includes gene therapies in ophthalmology and neuroscience.

AveXis is also developing gene therapies for some other rare diseases, such as Rett Syndrome and inherited amyotrophic lateral sclerosis.

AveXis has negative valuation ratios which indicate that the company registered losses in the past.

Prior to the M&A announcement, the AVXS stock had a high Short Share of Float which indicated that the stock was heavily shorted by investors and speculators.  

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

AveXis, Inc. (AVXS) Stock Guide

Updated at: 5:24 am ET, 16 May 2020

Before we start: if you're looking for AVXS stock price, you can quickly find it out by visiting Finny and typing "AVXS quote". If you're looking for a quick scoop on AVXS stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AVXS". You'll get all this info in one place. Or you can just type "AVXS news" to get the latest stock news.

Looking to buy or sell AveXis, Inc. (AVXS)? Interested in getting the full scoop on AVXS, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AVXS stock guide, we'll address key questions about AVXS, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. AVXS buy or sell? What is AVXS Finny Score?
2. What are the reasons to buy AVXS? Why should I buy AVXS stock?
3. What are the reasons to sell AVXS? Why should I sell AVXS stock?
4. What are AVXS key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Analysis

1. AVXS buy or sell? What is AVXS Finny Score?

#{finnyScore:null}Our quantitative analysis shows 0 reasons to buy and 1 reason to sell AVXS. AVXS doesn’t have an assigned Finny Score, because we don’t have sufficient data points to score the stock.

2. What are the reasons to buy AVXS? Why should I buy AVXS stock?

We can’t think of any good reason to buy this stock, which doesn’t mean they don’t exist.

3. What are the reasons to sell AVXS? Why should I sell AVXS stock?

Let's look at the reasons to sell AVXS stock (i.e., the bear case):

  • AVXS stock price ($217.83) is at the 52-week high. Perhaps now is a good time to sell? See AVXS price chart.

Key Stats

4. What are AVXS key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AVXS:

Metrics AVXS
Price $217.94
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 0.00%
Industry N/A
Sector N/A
Number of Employees N/A
Market Cap N/A
Forward P/E Ratio N/A
Price/Book Ratio N/A
Revenue (TTM) N/A
YoY Quarterly Revenue Growth N/A
Profit Margin N/A

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Use Finny to ask any finance or investment question. Big or small. Personal or general.
Follow Us