As per the agreement, Novartis will pay an upfront payment of $34m to Enanta and is even eligible to receive up to $406m if certain clinical, regulatory, and commercial milestones are met.
On worldwide sales of products, and retains co-detail rights in the US, Enanta may receive tiered double-digit royalties.
Novartis is responsible for all costs associated with the development, manufacture and commercialization of EDP-239.
Under the agreement, Novartis will fund Enanta’s drug discovery efforts on certain additional compounds targeting NS5A.
Enanta president and CEO Jay Luly said EDP-239 is a potent ingredient in combination drug therapy and preclinical studies have demonstrated high potency against multiple genotypes of the virus.