US-based biotechnology company Matchpoint Therapeutics has signed an exclusive option and license agreement with Swiss drugmaker Novartis to develop oral inhibitors targeting inflammatory diseases.
Under the terms of the agreement, Matchpoint is eligible to receive up to $1bn in total payments, including an upfront payment of $60m and research funding.
The consideration also includes development and commercial milestone payments, and tiered royalties on future sales.
Matchpoint will use its advanced covalent exploration (ACE) platform to advance its preclinical programme through candidate selection and its development.
It will lead all research activities until that stage, receiving research funding from Novartis.
Matchpoint Therapeutics president and CEO Andre Turenne said: “This collaboration highlights the potential of our targeted approach to covalent chemistry to unlock novel mechanisms and achieve superior pharmacology.
“We are thrilled to collaborate with Novartis, not only for its leadership in immunology research, but also for its outstanding drug development and commercialisation track record. These capabilities will ensure that our program has the maximum impact for patients.”
If Novartis chooses to exercise its option, it will gain global rights to develop and commercialise the resulting products.
Matchpoint’s approach targets a novel binding site on proteins linked to inflammatory diseases to inhibit the production of pro-inflammatory cytokines and chemokines.
Aquilo Partners and Ropes & Gray served as financial and legal advisors to Matchpoint on the transaction.
Novartis immunology research global head Richard Siegel said: “Novartis is deeply committed to pioneering innovative approaches for patients living with inflammatory and autoimmune diseases.
“We are excited to partner with Matchpoint to advance covalent medicines with the potential to address unmet medical needs and historically undruggable targets.”
