Novartis and PeptiDream expand peptide discovery partnership

Novartis and PeptiDream, a Japanese biopharmaceutical company, have announced an expansion of their collaborative efforts to discover new peptides. The partnership aims to develop peptide-based radioligand therapies (RLTs) and diagnostics by utilizing PeptiDream's advanced Peptide Discovery Platform System (PDPS) technology.

PeptiDream will employ its PDPS technology to identify and optimize macrocyclic peptides that target specific proteins selected by Novartis. These peptides will then be linked with radionuclides to form radioligand therapies or other therapeutic and diagnostic applications. As part of this agreement, PeptiDream will receive an upfront payment of ¥28.03 billion ($180 million) from Novartis. Furthermore, the Japanese company is eligible for milestone payments totaling ¥422.03 billion, contingent on achieving specific development, regulatory, and commercial milestones. Additionally, Novartis will provide tiered royalty payments based on net sales of the resulting products.

This new agreement builds on the existing collaboration between the two companies, which began with a peptide-drug conjugate partnership in 2019. The relationship dates back to 2010 and includes the licensing of PeptiDream's PDPS technology to Novartis in 2015.

Patrick Reid, CEO of PeptiDream, expressed enthusiasm about the expanded collaboration: “We are delighted to further expand our long-standing macrocyclic peptide discovery collaboration with Novartis, adding additional peptide RLT and other programmes to our strong partnership. As macrocyclic peptides continue to be the ideal vectors for the targeted delivery of a variety of therapeutic payloads, PeptiDream continues to build an extensive pipeline of partnered as well as internal peptide-conjugate programmes.”

The transaction's completion is subject to receiving necessary consents and approvals.

Shiva Malek, Global Head of Oncology Research at Novartis, also commented on the partnership's progress and future potential: “We are enthusiastic about the progress we’ve made with PeptiDream through our long-standing research collaboration and look forward to continuing our work together as we strive to create impactful new therapies for patients. Our expanded partnership reflects our shared commitment to pioneering science that broadens the scope of transformative therapeutic approaches such as RLT.”

This development follows Novartis's recent financial success, as the company reported a net income of $2.68 billion from continuing operations for the first quarter of 2024. This figure represents a 25% increase compared to the $2.15 billion recorded in the first quarter of 2023.

Through this expanded partnership, Novartis and PeptiDream aim to advance the frontiers of peptide-based therapies and diagnostics, leveraging cutting-edge technologies and shared expertise to bring new, impactful treatments to patients worldwide.