Novartis AG (NYSE: NVS) has entered into a written agreement with French pharmaceutical company, Advanced Accelerator Applications (NASDAQ: AAAP), for $3.9 billion. Novartis shares were up 0.8 percent and Advanced Accelerator Applications shares were up 10.3 percent during Monday’s premarket hours.

Under the agreement, Novartis will make a cash offer of $41 per ordinary share of AAA and $82 per American Depositary Share, which totals $3.9 billion. Novartis will also assume all debt.

Advanced Accelerator Applications is a French-based radiopharmaceutical company that researches, produces, and commercializes it own molecular nuclear medicines, such as its Lutathera, a RLT product for neuroendocrine tumors.

Lutathera is one of AAA’s medicinal formulations containing radioisotopes which are used clinically for both in diagnosis and therapy.

Novartis states that the acquisition would strengthen its oncology presence in its current products as well future products with AAA’s technology platform. Novartis also states that the acquisition will help expand develop, manufacture, and commercialize radiopharmaceutical.

"Novartis has a strong legacy in the development and commercialization of medicines for neuroendocrine tumors where significant unmet need remains for patients," said Bruno Strigini, CEO, Novartis Oncology. "With Lutathera we can build on this legacy by expanding the global reach of this novel, differentiated treatment approach and work to maximize Advanced Accelerator Applications broader RLT pipeline and an exciting technology platform.”

Lutathera is under review with the FDA and its decision is expected in late January 2018.

“We believe that the combination of our expertise in radiopharmaceuticals and theragnostic strategy together with the global oncology experience and infrastructure of Novartis, provide the best prospects for our patients, physicians and employees, as well as the broader nuclear medicine community.” said Stefano Buono, Chief Executive Officer of AAA.