Novartis buys Protez for $100M

Swiss drug major Novartis has finalized an agreement to fully acquire privately-held US biotechnology company Protez Pharmaceuticals for $100.0 million. Protez will remain a stand-alone subsidiary of Novartis, continuing its operations in Malvern, Pennsylvania.

Novartis will also acquire the US and European rights to PZ-601, a novel hospital antibiotic currently undergoing clinical trials. Protez' owners are eligible for additional payments of up to $300.0 million for the drug, once set clinical milestones, regulatory approval and commercial targets have been achieved. Japanese firm Dainippon Sumitomo is the intellectual property holder of PZ-601 and retains rights in other markets.

A 100-patient, Phase II study was started by Protez in May to evaluate the safety and efficacy of PZ-601 in patients with complicated skin and skin structure infections including cellulites, abscesses, infected wounds and ulcers. Novartis says it plans to start additional trials for PZ-601, with the aim of first regulatory submissions in 2012.