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news.US-based Elixir Pharmaceuticals, has entered into an agreement with Novartis, wherein Novartis has been granted an exclusive option to acquire the former, following the successful completion of a Phase IIa clinical study of Elixir’s lead oral “ghrelin” antagonist, currently in preclinical, IND-enabling studies.
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The deal with Novartis may exceed $500 million, including the initial acquisition payment plus potential additional regulatory and sales milestone payments. The agreement also includes right to an exclusive worldwide license under pre-agreed conditions.
Paul Martha, MD, President and CEO of Elixir, said: “Type 2 diabetes continues to grow as one of the leading causes of excess morbidity and mortality around the world. New therapeutic options for this serious and chronic disease are sorely needed. We are extremely pleased to have reached agreement with Novartis on the tremendous potential value of our ghrelin antagonism program.”
Elixir also announced the completion of $12 million equity financing, led by MPM Capital on behalf of the MPM Bio IV NVS Strategic Fund LP. Todd Foley, Managing Director at MPM Capital, commented: “This major commitment by the MPM Bio IV NVS Strategic Fund LP reflects our belief in the potential of Elixir’s program to address important unmet needs in type 2 diabetes. We are pleased to be a part of this successful financing, and we look forward to working closely with Elixir.”