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Print Edition StoriesThursday, January 15, 2009
Peptimmune pens Novartis deal worth up to $500M
Rodney Brown on NECN: Hacking into medical devices
Streaming Video: Mass High Tech All-Stars Thought Leadership Roundtable
In their own words: Tod Woolf, CEO, RXi Pharmaceuticals Corp.
Cambridge-based biotech Peptimmune Inc. has granted pharmaceuticals giant Novartis AG an option on one of its leading drug candidates that could net Peptimmune a half billion dollars and more.
This week, Peptimmune announced the deal with Novartis (NYSE: NVS), which will cover PI-2301, Peptimmune’s multiple sclerosis drug candidate. Under the terms of the agreement, it has granted Novartis an exclusive option for worldwide rights to develop and commercialize the compound.
PI-2301 is a peptide copolymer developed from Peptimmune’s unique peptide chemistry platform. It’s designed to improve the regulatory response of the immune system and regulate the pathogenic autoimmune response in some diseases. Currently, it’s in Phase 1b development by Peptimmune.
Should Novartis exercise the option to PI-2301, it would assume the costs and responsibilities of the worldwide clinical development, manufacturing and marketing. Additionally, Peptimmune would be eligible to receive payments of up to $500 million from the option’s exercise and the completion of developmental, regulatory and commercial milestones. Peptimmune would also be eligible to receive royalties.
In related news, the MPM Bio IV NVS Strategic Fund LP of Boston-based MPM Capital made an equity investment worth an undisclosed amount in Peptimmune, as well.
Peptimmune was founded in 2002 to exploit its proprietary technology to design peptides and peptide mixtures. Last July, it announced it had secured $8.9 million in a second close of a Series D preferred stock offering. Peptimmune said the cash would be used to evaluate PI-2301.
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