Novartis has announced the acquisition of San Diego-based Kate Therapeutics in a deal valued at $1.1bn, enhancing its portfolio of gene therapies for inherited neuromuscular diseases.
The deal includes an upfront payment in cash with added payments contingent on achieving certain milestones.
Kate Therapeutics is a preclinical-stage biotechnology company that focuses on adeno-associated virus (AAV)-based gene therapies.
The acquisition adds the company’s preclinical candidates for Duchenne muscular dystrophy, facioscapulohumeral dystrophy and myotonic dystrophy type 1 to Novartis' portfolio.
Novartis Neuroscience Research global head Robert Baloh stated: “This acquisition builds on our expertise and leadership in neuroscience drug discovery and brings to Novartis talent, expertise and capabilities that are highly complementary to our ongoing internal efforts.
“It reflects our commitment to addressing unmet medical needs in neuroscience and tackling the limitations of existing gene therapies for patients with inherited neuromuscular conditions.”
Kate Therapeutics has developed the DELIVER platform, which utilises a new approach combining diverse capsid libraries, in vivo selection and machine learning to evolve capsid variants.
The company’s technology platforms deliver payloads to specific tissues, potentially reducing unintended effects on organs such as the liver.
Novartis Biomedical Research president Fiona Marshall stated: “We are delighted to bring Kate Therapeutics’ platform technologies and programmes together with Novartis scientific expertise and leadership in gene therapy and neuroscience innovation.
“We have been highly impressed with the rigour and potential of Kate’s science, and we are confident this acquisition will further enhance our ability to bring forward new therapeutic options for patients living with neuromuscular diseases.”
This acquisition follows Novartis’ recent collaboration with Ratio Therapeutics to develop a radiotherapeutic targeting somatostatin receptor 2 for cancer treatment.
