Novartis options Radius Health's Ph II osteoporosis drug in deal worth upto $500M

USA-based Radius Health has granted Swiss drug major Novartis an option to obtain an exclusive worldwide license, excluding Japan, to develop and commercialize all formulations of BA058, Radius' osteoporosis drug candidate. BA058 is a proprietary analog of human parathyroid hormone-related protein currently in Phase II development by Radius. In a separate but related deal, the MPM Bio IV NVS Strategic Fund LP has purchased $10.0 million of series C preferred stock of Radius.

In the event that Novartis exercises the option to license BA058, the Swiss firm would assume the global clinical development, manufacturing and marketing of BA058 and all associated costs. Radius would receive payments on the option exercise and on successful completion of certain development, regulatory and commercial milestones. These payments together could total more than $500.0 million, $125.0 million of which will be paid to French drugmaker Ipsen, from which Radius licensed BA058 in 2005. Radius would also be eligible to receive royalties on product sales and has retained the option to co-commercialize BA058 in the USA. Additional terms were not disclosed.

Novartis option is latest of the mega deals