Novartis Acquires Kate Therapeutics for $1.1 Billion
Swiss pharmaceutical giant Novartis has acquired Kate Therapeutics for $1.1 billion. The San Diego, US-headquartered preclinical stage biotechnology company develops adeno-associated virus (AAV)-based gene therapies to treat inherited neuromuscular diseases.
The technology platforms developed by Kate Therapeutics integrate capsid and cargo technologies to deliver payloads to desired tissues, while potentially mitigating off-target effects to tissues such as the liver. This approach aims to improve both the efficacy and safety of gene therapies, opening potential possibilities for treating complex diseases previously difficult to address with current technologies, including inherited neuromuscular diseases.
Kate Therape’ primary programs include preclinical candidates for Duchenne muscular dystrophy (DMD), facioscapulohumeral dystrophy (FSHD), and myotonic dystrophy type 1 (DM1).
Fiona Marshall, president of Biomedical Research at Novartis, said: “We have been highly impressed with the rigor 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 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,” added Robert Baloh, global head of Neuroscience Research at Novartis.
Under the terms of the agreement, Kate Therapeutics’ shareholders are also entitled to receive additional amounts payable on achievement of specified milestones.
