Novartis has gained the option to develop and commercialize Peptimmune's multiple sclerosis drug candidate PI-2301, in a deal that could be worth up to $500 million. If Novartis chooses to exercise that option, it will take on clinical development, manufacturing and marketing of PI-2301 and all associated costs. Peptimmune stands to gain royalties on the drug, in addition to the $500 million in milestone payments.
"We believe that Novartis represents an outstanding future partner for Peptimmune and the global development of PI-2301. This option agreement provides Peptimmune with access to both Novartis' world class development expertise and the necessary capital to invest in this proprietary product," said Thomas P. Mathers, President and CEO of Peptimmune. In a separate but related agreement, the MPM Bio IV NVS Strategic Fund L.P. made an equity investment in Peptimmune.
- here's Peptimmune's release