Novartis links with Vertex in $800M product development deal

Novartis of Switzerland has forged a collaboration with VertexPharmaceuticals of the USA in a deal which could be worth up to $800 million. The alliance is for the discovery, development, and commercialization of small-molecule drugs directed at targets in the kinase protein family.

Under the terms of the agreement, Novartis will provide Vertex with $15 million in initial payments and research funding of $200 million over six years. In return, Vertex has responsibility for drug discovery and clinical proof-of-concept testing of drug candidates. Novartis gains exclusive worldwide rights to eight drug candidates and, if the discovery effort is successful, further license fees, milestone payments and reimbursements of $600 million or more are possible for Vertex.

More than 500 human kinases have been described in the scientific literature, and specific enzymes in the family have been implicated in a wide range of diseases, including cancer, cardiovascular disease, inflammatory disorders and neurological diseases.