New round of purchases in the field of pharmaceutica. After Sanofi with Amunix Pharmaceuticals, Pfizer with Arena Pharmaceuticals, the Swiss pharmaceutical company Novartis goes shopping in London and buys the British ocular gene therapy company, Gyroscope Therapeutics, for a $1,5 billion. Another purchase for the Swiss giant which at the end of November had announced a maxi-acquisition of 9,7 billion dollars for the American The Medicine Company, producer of an important drug against cholesterol.
There are no currently approved therapies that impact disease progression for the 8 million people who suffer from geographical atrophy, an advanced form of dry age-related macular degeneration that leads to progressive and irreversible vision loss. It is one of the most significant unmet needs in retinal diseases.
The acquisition will add to the Novartis portfolio a experimental gene therapy, a one-off, currently in Phase 2 clinical development for the treatment of people with the disease. Gene therapies are currently among the most expensive drugs in the world and aim to cure disease by replacing the missing or faulty version of a gene in a patient's cells with an intact gene.
“With our pioneering research in ocular gene therapies and our experience gained in bringing Luxturna to patients with hereditary retinal dystrophy outside the United States, Novartis has a strong expertise in ocular gene therapies that will position us well to continue developing this promising one-off treatment – he said Marie-France Tschudin, president of Novartis Pharmaceuticals -. This acquisition is another step forward in our commitment to deliver innovation in ophthalmology to treat and prevent blindness around the world.”
Novartis will carry out a Prepayment of $800 million and potential additional payments of up to $700 million. The closing of the transaction is subject to customary closing conditions, including regulatory approvals. Until then, the two companies will continue to operate as separate and independent businesses.
In addition, Syncona - parent company of the British company - will also receive royalties from future sales of Gyroscope's gene therapy and cash proceeds of 334 million pounds (or 442,9 million dollars) for its participation. The deal, which Novartis plans to finance with cash, comes after the Swiss drugmaker raised $20,7 billion by selling a nearly one-third voting stake in Roche last November.
For the Swiss giant, this is the third acquisition in the optogenetics sector in three months: first Arctos Medical, then the American company See Bio.
