Novartis secures rights to Kyorin's urticaria drug in $830m deal

Novartis has embarked on a significant strategic expansion by acquiring the global rights to Kyorin Pharmaceutical’s promising pre-clinical drug for inflammatory diseases, with the transaction valued at over $830 million. This partnership grants Novartis an exclusive worldwide license to develop, manufacture, and market KRP-M223, a novel MRGPRX2 antagonist. The primary focus of this drug is on chronic spontaneous urticaria (CSU), along with other allergic and inflammatory conditions involving mast cells.

Chronic spontaneous urticaria is a prevalent dermatological condition, impacting around 40 million individuals globally. It is characterized by the sudden and persistent emergence of welts or hives on the skin, which are often itchy and can be painful. These symptoms typically last for a minimum of six weeks. Beyond the physical manifestations, CSU often severely affects patients’ quality of life, leading to sleep disturbances and increasing the risk of psychological issues like anxiety and depression.

According to the terms outlined in the agreement, Novartis will pay Kyorin an upfront sum of $55 million, with the potential for Kyorin to receive milestone payments that could reach up to $777.5 million. Additionally, Kyorin will be entitled to tiered royalties based on the net sales of the drug. There is also a provision for Kyorin to potentially commercialize KRP-M223 within Japan, with Novartis maintaining the option to co-promote the drug in the Japanese market.

This move is part of a broader strategy by Novartis to broaden its product pipeline across various therapeutic areas. The company has been actively pursuing acquisitions, including a recent announcement regarding the expansion of its cardiovascular portfolio. Novartis is set to acquire Anthos Therapeutics for approximately $3.1 billion, a move that will bring abelacimab into its fold. Abelacimab is currently undergoing phase 3 trials to assess its effectiveness in preventing stroke and systemic embolism in individuals with atrial fibrillation, which is the most common type of irregular heart rhythm.

In February, Shreeram Aradhye, who serves as the president of development and chief medical officer at Novartis, commented on the Anthos Therapeutics acquisition. He underscored how this acquisition strengthens Novartis’s focus within the cardiovascular sector, complementing its existing portfolio of treatments and clinical programs designed to assist patients with heart diseases worldwide.

Furthermore, Novartis has been actively expanding its portfolio in other areas as well. In December, the company secured exclusive global rights to PTC Therapeutics’ Huntington’s disease program, which is in the mid-stage of development, in a deal that could amount to $2.9 billion. Additionally, in November, Novartis entered a worldwide license and collaboration agreement with Ratio Therapeutic, valued at $745 million, to advance a somatostatin receptor 2-targeting radiotherapeutic candidate aimed at treating cancer.

This series of strategic acquisitions and partnerships underscores Novartis’s commitment to diversifying its therapeutic offerings and enhancing its pipeline across multiple domains. These efforts are poised to bolster Novartis’s standing in the pharmaceutical industry, enabling it to address various unmet medical needs and improve patient outcomes on a global scale.