Dunad Therapeutics and Novartis have signed a strategic collaboration and license agreement to develop next generation targeted protein degrader therapies.
Under the deal, Novartis gets the sole rights for license, development, and commercialisation of the resulting oral covalent and protein degrading small molecule drugs, for up to four targets.
As per the terms of the agreement, Dunad will receive an upfront payment of $24m along with an equity investment, and significant funding for carrying out research works.
The company will also be eligible to receive up to $1.3bn as milestone payments and royalties.
The company will also tap Dunad’s platform to create these new drugs.
Leveraging mono-valent small molecules, the platform induces selective degradation of proteins that cause diseases by directly modifying the target.
This platform is claimed to have the capability to create degrader therapies that widen the “frontiers of protein degradation targets”.
The collaboration will see Dunad handle programme execution, right up to lead optimisation, while Novartis will fund the research collaboration, and offer access to assays and models besides ligand knowledge.
Dunad co-founder and chief operating officer Diana Kraskouskaya said: “This collaboration is an important milestone for Dunad.
“It allows us to rapidly expand the impact of our platform technology to additional target classes and therapeutic areas, beyond Dunad’s own internal target pipeline.
“Our growing team is committed to advancing our internal pipeline and partnered programs directed against the most sought-after and previously intractable targets.”
Dunad board director and its founding investor Epidarex Capital partner Elizabeth Roper said: “This collaboration provides validation of Dunad’s differentiated protein degradation technology and explores the full potential of this new modality as a therapeutic approach.”