Novartis has inked a deal to pay Idenix up to $525 million for the rights to an experimental therapy for hepatitis C. The news comes fast on the heels of an announcement from Idenix--which is 56 percent owned by Novartis--that clinical trials of valopicitabine (NM283) had run into trouble. Some analysts see the licensing deal as a way for Novartis to display its confidence in the program at a critical point. Novartis will pay $25 million up front, with $45 million tied to Phase III. Researchers have had to modify a Phase II trial of the drug after patients receiving the highest dose developed gastrointestinal side effects. Vertex and Schering-Plough are also in the race to test new therapies for hepatitis C. Idenix and Novartis are also pursuing new drug targets for hepatitis B.
- read this Dow Jones report