Novartis AG (NYSE:NVS) said it had agreed to buy IFM Tre from IFM Therapeutics before Monday’s opening bell.
Novartis on Monday said it had agreed to pay $310 million U.S. upfront, with the possibility for more later, for some research assets of Boston-based inflammation specialist IFM as the Swiss drugmaker expands its immunology pipeline.
The deal, for the IFM subsidiary IFM Tre, could eventually reach nearly $1.6 billion, IFM said, should its portfolio meet certain milestones. IFM Tre has one molecule, IFM-2427, in an early Phase 1 trial, and a pair of less-developed assets.
IFM focuses on immune system modulation. In buying three potential drugs, Novartis is hoping for agents to fight chronic inflammatory disorders like gout, atherosclerosis and fatty liver disease (NASH), as well as inflammatory bowel disease.
"These programs complement the existing Novartis pipeline of anti-inflammatory medicines," said Novartis, adding studies have shown IFM Tre’s molecules can selectively suppress disease-causing inflammation, while allowing the rest of the immune system to continue normal operations.
IFM Therapeutics is part of the portfolio of Cambridge, Massachusetts-based Atlas Venture, whose other stakes include Intellia Therapeutics that is also working with Novartis. The IFM Tre deal is seen closing before July.
As for Novartis, "We have," declares the company’s website, "… a clear mission, focused strategy and strong culture, all of which we expect will support the creation of value over the long term for our company, our shareholders and society."
Shares in NVS inched up 14 cents in New York, to $96.26, soon after Monday morning’s open.
