Novartis and Dunad Therapeutics Team Up to Develop Protein Degrading Drugs

Novartis has partnered with Cambridge, UK-based Dunad Therapeutics to develop protein degradation therapies in a deal potentially worth more than $1.3 billion.

The pact could position the companies as leaders in protein degradation therapies ― which work by reducing the number of disease-causing proteins rather than just inhibiting their activity like other small-molecule drugs.

The collaboration will leverage Dunad’s proprietary platform to develop candidates for up to four drug targets. The companies did not disclose the diseases the new therapies will target. But Dunad is primarily focused on oncology and central nervous system disorders.

Under the deal, Dunad will receive an upfront payment of $24 million, an equity investment and “significant” research funding. It will also be eligible to receive up to $1.3 billion in milestone-based payments, as well as royalties on sales. In return, Novartis will have the exclusive option to license and sell any drugs developed under the agreement.