Ptc Therapeutics, a US company at the forefront of pharmaceutical research, has signed a Exclusive agreement with Novartis, a Swiss pharmaceutical giant, for the development and commercialization of the program PTC518 Huntington's Disease and related molecules. Under the agreement, PTC will receive a Initial payment of $1 billion, with the possibility of obtaining up to additional $1,9 billion for development, regulatory and sales purposes.
Furthermore, the agreement provides for a share of profits in the United States (40% PTC, 60% Novartis) and double-digit royalties on sales outside the US market.
“Huntington’s disease is a devastating and fatal disease. With this agreement, we are strengthening our neuroscience pipeline, targeting innovative solutions for neurodegenerative diseases with unmet needs,” said You go narasimhan, CEO of Novartis.
The details of the agreement
Novartis will be responsible for managing the development, production , marketing of PTC518, a drug being developed by PTC Therapeutics through its molecular splicing platform. The transition of responsibility will occur following the conclusion of the placebo-controlled phase of the PIVOT-HD clinical trial, expected in the first half of 2025.
The closing of the agreement is subject to the regulatory approvals required, with completion expected within the first quarter of the same year.
PTC518 stands out for its promising results obtained in the clinical trial. Interim data from the PIVOT-HD study, published in June 2024, showed a dose-dependent reduction in levels of mutant Huntingtin protein in blood and cerebrospinal fluid, as well as preliminary signs of clinical benefit after 12 months of treatment. The drug also demonstrated a favorable safety and tolerability profile, strengthening hopes for an effective therapy against Huntington's disease.
“The partnership with Novartis combines our expertise in splicing therapies with the global development and commercialization capabilities of the Swiss giant,” said Matthew B. Klein, CEO of PTC Therapeutics.
The agreement between PTC and Novartis is not only a commercial success, but also opens up new perspectives for patients with Huntington's disease. With the support of Novartis, PTC518 could become the first oral treatment to significantly modify the course of the disease.
Ptc Stock Market Boom: 20% Jump
The news of the agreement had a immediate impact on the markets. Ptc Therapeutics (NASDAQ: PTCT) shares have recorded a 20% jump, driven by investor enthusiasm for the potential of this multi-billion dollar collaboration.
Analysts consider the agreement a turning point for Ptc, which sees not only a strong injection of liquidity, but also the opportunity to collaborate with a giant like Novartis, known for its commitment to neuroscience.
