Novartis To Take Over Corthera

Novartis is expected to gain exclusive worldwide rights to relaxin, a recombinant version of a naturally occurring human peptide, through the acquisition of Corthera. Relaxin is currently in phase III clinical trials as a potential treatment option for patients with acute decompensated heart failure (ADHF).

As per the transaction, Novartis will acquire all of the outstanding shares of Corthera’s stock for $120m. In addition, Corthera’s current shareholders will be eligible to receive additional payments of up to $500m that are contingent upon clinical milestones, regulatory approval of relaxin and the achievement of commercialisation targets.

Reportedly, the transaction, which is subject to customary regulatory approvals, is expected to be completed in the first quarter of 2010. After the transaction, Novartis will acquire the exclusive worldwide rights for relaxin in all countries, except Australia and Canada

Novartis is also expected to assume full responsibility for the development and commercialisation of relaxin, with regulatory submissions in the US and Europe planned for 2013. The FDA has granted Fast Track designation to relaxin as part of its program to expedite the review of new drugs intended to treat serious or life-threatening conditions.

Stan Abel, president and CEO of Corthera, said: “We are extremely pleased to be entering into this transaction with Novartis. This transaction highlights relaxin’s potential as an important treatment option for patients suffering from acute heart failure.”