Novartis Gains Global Licensure for Respiratory Distress Cell Therapy

Novartis has secured the exclusive worldwide rights to Mesoblast’s investigational cell therapy, remestemcel-L, for the treatment of acute respiratory distress syndrome (ARDS) and complications arising from infection by COVID-19.

The Swiss drugmaker said it will receive an initial $50 million payment from the Australia-based regenerative medicine company, with the potential for future payments from performance-based milestones and royalties.

Remestemcel-L is currently being evaluated in a 300-person phase 3 study for COVID-19-associated respiratory issues, with Novartis hoping to launch another nonCOVID-19-linked ARDS trial upon the phase 3 study’s completion and the deal’s closure.

The therapy works by injecting mesenchymal stromal cells collected from a bone marrow donor into a patient and is meant to reduce inflammation by counteracting the cytokine storms that lead to overactive immunity.