Swiss drugmaker Novartis has acquired US-based biotechnology company Kate Therapeutics for up to $1.1bn to strengthen its ongoing efforts to advance gene therapies for patients.
Kate is focused on developing adeno-associated virus (AAV)-based gene therapies to treat genetically defined neuromuscular diseases.
Its primary programmes include preclinical candidates for Duchenne muscular dystrophy (DMD), facioscapulohumeral dystrophy (FSHD), and myotonic dystrophy type 1 (DM1).
Under the terms of the agreement, Kate will receive up to $1.1bn, including a cash component paid at closing and additional milestone payments.
Novartis biomedical research president Fiona Marshall said: “We are delighted to bring Kate Therapeutics’ platform technologies and programs together with Novartis scientific expertise and leadership in gene therapy and neuroscience innovation.
“We have been highly impressed with the rigour and potential of Kate’s science, and we are confident this acquisition will further enhance our ability to bring forward new therapeutic options for patients living with neuromuscular diseases.”
Kate has developed the DELIVER platform, which combines diverse capsid library generation, transcript-based in vivo selection, and machine learning to evolve advanced capsid variants.
Using DELIVER, Kate created advanced liver de-targeted muscle-tropic capsids, which selectively transduce both skeletal muscle and cardiac tissue, while avoiding the liver.
Kate’s technology platforms integrate capsid and cargo technologies to deliver payloads to desired tissues, while potentially mitigating off-target effects to tissues such as the liver.
The approach would improve the efficacy and safety of gene therapies for treating complex diseases previously difficult to address, including inherited neuromuscular diseases.
The acquisition of the US biotechnology company will enhance and strengthen its strategic priorities in gene therapy and neuroscience, said the Swiss drugmaker.
Novartis neuroscience research global head Robert Baloh said: “This acquisition builds on our expertise and leadership in neuroscience drug discovery and brings to Novartis talent, expertise and capabilities that are highly complementary to our ongoing internal efforts.
“It reflects our commitment to addressing unmet medical needs in neuroscience and tackling the limitations of existing gene therapies for patients with inherited neuromuscular conditions.”
