Novartis bolsters neuroscience pipeline with $500m DTx buy

Novartis adds siRNA therapeutics platform and a preclinical therapy for Charcot-Marie-Tooth disease type 1A (CMT1A) through the acquisition of DTx Pharma.

The acquisition sees Novartis pay San Diego-based biotech firm DTx $500 million upfront with the potential of giving a further $500 million dependent on specific milestones. DTx focuses on tackling the delivery challenges of oligonucleotide therapeutics with its Fatty Acid Ligand Conjugated OligoNucleotide (FALCON) platform, which supports production of small interfering RNA (siRNA) therapeutics.

In addition to gaining the full rights to DTx’s FALCON platform, Swiss biopharma giant Novartis will also add DTx-1252 to its portfolio. DTx-1252 is a FALCON siRNA candidate targeting peripheral myelin protein 22 (PMP22) to treat CMT1A. CMT1A is an autosomal-dominant disease that can cause life-long loss of muscle function.

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Furthermore, early-stage programs in neuromuscular and CNS indications are also included in the acquisition.

“I am thrilled that Novartis will be moving forward with our CMT1A therapeutic program and the FALCON platform. With its resources and capabilities in neuromuscular diseases, Novartis is well positioned to accelerate the development of DTx-1252 and provide hope to patients, who are desperately in need of therapy,” said Artie Suckow, CEO of DTx Pharma.

“I am also extremely proud of the commitment and passion of our team, which has established DTx Pharma as a leader in extra-hepatic delivery of siRNA, as demonstrated by our work to advance the first investigational FALCON siRNA designed to be delivered to the peripheral nervous system to treat the genetic cause of CMT1A.”

This is Novartis’ second acquisition this summer. In June, the firm invested a $3.2 billion cash and share offering to acquire Chinook. The acquisition is set to close later this year and will add several assets to Novartis’ late-stage pipeline, including the subcutaneous administered anti-APRIL monoclonal antibody (mAb) Zigakibart (BION-1301).