The Medicines Co., based in Parsippany, announced it entered into definitive agreement in which Novartis AG will acquire the company for $85 per share in an all-cash transaction, implying a fully diluted equity value of $9.7 billion.

The boards of directors of both companies unanimously approved the transaction.

“This $9.7 billion transaction is a great outcome for shareholders of The Medicines Co.,” Alexander Denner, chairman of The Medicines Co. board of directors, said. “Not so long ago, The Medicines Co. was at a crossroads due to the loss of its key revenue driver. I am proud of the company’s transformation under a reconstituted board into a lean, highly focused team successfully advancing an exciting new therapy and creating tremendous value for patients and shareholders.”

Completion of the transaction is expected in first quarter of 2020, pending the successful completion of the tender offer and other customary closing conditions. Until that time, The Medicines Co. will continue to operate as a separate and independent company.

The company expects to file regulatory submissions for inclisiran – according to The Medicines Co., the first and only cholesterol-lowering therapy in the siRNA class – in the U.S. in the fourth quarter of 2019 and in Europe in the first quarter of 2020.

“Our company’s singular, relentless focus and the unwavering commitment of our employees have led to this opportunity to unlock the intrinsic value of inclisiran for patients and to maximize value for our shareholders,” said The Medicines Co. Chief Executive Officer Mark Timney.

“Our vision for inclisiran is an affordable, widely available treatment that will dramatically reduce both the medical and economic burden of cardiovascular disease,” Denner added. “Given the enormous capital required to realize its full potential, we have decided to sell to a company with resources and scale in excess of ours.”

Novartis has U.S. 0ffices in East Hanover.