Epistem inks R&D pact with Novartis

Shares of Epistem shot up this morning after the company announced that it had struck an R&D pact with Novartis. Epistem gets only $4 million upfront but also snared two years' worth of R&D support as well as up to $45 million in milestones for each new product that is developed in the pact. One analyst notes that Novartis' support will fund Epistem's internal research work, which should allow the company to achieve profitability this year.  

"The collaboration will enable us to accelerate the development of our existing targets with a world class pharmaceutical collaborator and to jointly explore disease opportunities in regenerative medicine," said Matthew Walls, Epistem CEO. Epistem is commercializing its expertise in epithelial stem cells in the areas of oncology, gastrointestinal and dermatological diseases.

"The collaboration will leverage each group's strengths to make novel discoveries leading to advances in treating unmet medical needs across several disease areas," said Dr. Jeffrey Moore, novel therapies division managing director.

- check out the Epistem release

Related Articles:
Novartis inks $575M pact for Portola drug
Novartis gains option to license MS drug
Fledgling Forma inks $200M Novartis deal
Novartis pays $20M up front for vax program