Novartis secures IFM Due, a subsidiary of IFM Therapeutics, in an $835 million deal, gaining access to STING antagonists for inflammatory diseases. This acquisition builds on their longstanding collaboration and aligns with Novartis’s strategic moves in oncology and neurology, showcasing its commitment to pioneering transformative therapies and addressing unmet medical needs.
In a significant move within the biotech sphere, Novartis has set its sights on expanding its portfolio by acquiring IFM Due, a subsidiary of the privately held IFM Therapeutics. The announcement of this strategic acquisition came on Wednesday, with the companies revealing a deal valued at a potential $835 million. Under the terms of the agreement, IFM Therapeutics is set to receive an upfront payment of $90 million, while remaining eligible for up to $745 million in milestone payments as the collaboration progresses.
This latest development marks a continuation of the partnership between Novartis and IFM Therapeutics. The roots of collaboration stretch back to September 2019 when IFM Therapeutics entered into an option and collaboration agreement with Novartis. This initial agreement involved fixed payments from Novartis to finance the research and development endeavors of the program. In return, Novartis secured the option to acquire IFM Therapeutics, setting the stage for further cooperation and exploration of synergies between the two entities.
With the completion of this acquisition, Novartis gains exclusive access to IFM Due’s portfolio of STING antagonists, representing a significant stride in the realm of inflammatory disease therapeutics. These STING antagonists hold promise in addressing conditions driven by inflammation, particularly those characterized by excessive interferon and other pro-inflammatory cytokine signaling. Richard Siegel, global head of immunology research at Novartis, expressed enthusiasm about the acquisition, describing it as the culmination of a fruitful four-year preclinical collaboration. He highlighted the potential of IFM Due’s STING program to offer transformative treatment solutions for patients grappling with unmet medical needs in the realm of inflammatory diseases.
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The journey of collaboration between Novartis and IFM Therapeutics has seen other notable milestones. In April 2019, Novartis ventured into a significant acquisition, absorbing IFM Tre, another subsidiary of IFM Therapeutics. This transaction, valued at $310 million upfront with additional milestone payments amounting to $1.26 billion, was centered around the development of NLRP3 antagonists targeting inflammatory diseases. Such strategic moves underscore Novartis’s commitment to bolstering its presence in the field of inflammation therapeutics through targeted acquisitions and collaborations.
Beyond the IFM Therapeutics realm, Novartis has been actively expanding its footprint through strategic acquisitions and licensing agreements. In February 2024, the Swiss pharmaceutical giant made waves by acquiring German biotech firm MorphoSys for approximately $2.9 billion, a move aimed at strengthening its oncology offerings. This strategic acquisition aligns with Novartis’s overarching mission to enhance its oncology portfolio and contribute to advancements in cancer treatment.
Further exemplifying its commitment to forging impactful collaborations, Novartis embarked on a strategic collaboration and licensing agreement with Voyager Therapeutics in January 2024. This collaboration involves an initial upfront payment of $100 million, with the potential for additional milestone payments totaling $1.2 billion. The focus of this collaboration revolves around the development of gene therapies targeting Huntington’s disease and spinal muscular atrophy, underscoring Novartis’s dedication to addressing unmet medical needs in neurological disorders.
In summary, Novartis’s acquisition of IFM Due signifies a significant step forward in its quest to pioneer innovative solutions for inflammatory diseases. With access to IFM Due’s portfolio of STING antagonists, Novartis is poised to advance the development of transformative therapeutics that have the potential to make a profound impact on patient care. This acquisition, alongside other strategic moves in the biotech landscape, underscores Novartis’s unwavering commitment to driving advancements in healthcare through strategic partnerships, targeted acquisitions, and groundbreaking research initiatives.