Novartis AG hopes that Vertex Pharmaceuticals Inc. 's structure-based drug design will deliver at least eight product candidates—already vetted for market size and validated in early-stage clinical testing—into its development pipeline in the next six years. That's the target for their new alliance, under which Novartis is providing Vertex $200 million in laboratory research funding over six years and another $200 million in the form of an interest-free loan to conduct preclinical and clinical proof-of-concept testing of small-molecule protein kinase inhibitors Vertex identifies using its high-throughput chemogenomics platform [See Deal].
Novartis Plugs Gaps in Pharma Pipeline
Novartis hopes that Vertex Pharmaceuticals' structure-based drug design will deliver at least eight product candidates that target protein kinases into its development pipeline in the next six years. That's the goal for their new alliance, under which Novartis is providing Vertex $200 million in research funding, another $200 million as an interest-free loan (which will be forgiven to the extent that the monies drawn cover development of products Novartis accepts for development), milestones, and royalties. In fact, Vertex could receive as much as $600 million prior to commercialization--more than the industry benchmark for target discovery deals, the $425 million Bayer/Millennium collaboration. But unlike that deal, in which technology exchange was a vital component, this is an outsourcing by Novartis of its R&D in the area--accounting for about a third of its current R&D spending on external collaborations.
More from Business Strategy
• By
As the health care industry undergoes a digital transformation, the integration of AI into Quality and Regulatory Management Systems is proving essential. The challenges for successful AI deployment emphasize the need for robust digital infrastructure, data literacy programs and privacy measures to enhance patient safety and commercial performance.
• By
Aurion Biotech is developing a cell therapy for corneal diseases that is cheap enough to produce and can be scaled that it should reach the masses in a way that other cell therapies cannot.
• By
Companies are exploring new mechanisms of action beyond traditional amyloid and tau and both investors and big pharma are willing to make deals when the science is compelling, panelists at Biotech Showcase said.
• By
Licensing deals have been growing in popularity over outright acquisitions in the pharmaceutical industry over the past decade. Licensing deals have doubled in number from 2015 to 2024, while M&A activity has decreased post-COVID. We consider the advantages of licensing deals and review notable licensing deals from the past 10 years with the potential to deliver high value relative to their initial investment.
More from In Vivo
• By
The world’s biggest pharmaceutical companies mostly saw growth in 2024 but 2025 promises to be more of a mixed bag with headwinds including losses of exclusivity, Medicare Part D redesign and challenges in the Chinese market.
• By
Farideh Bischoff, chief medical officer of Heranova Lifesciences, discusses the urgent need for better diagnostic options and the latest innovations transforming care for endometriosis patients.
• By
Bringing AI and digital healthtech innovation to patients works most efficiently via a three-way partnership in which clinicians and cloud services have equal weighting with a powerhouse innovator, Royal Philips told In Vivo during ECR 2025.