CAMBRIDGE, Mass., Jan. 15 /PRNewswire/ -- Peptimmune, Inc. ("Peptimmune"), a privately held biotechnology company, announced today that it has granted Novartis (NYSE: NVS) an exclusive option to obtain exclusive worldwide rights to develop and commercialize PI-2301, Peptimmune's multiple sclerosis drug candidate. In a separate but related agreement, the MPM Bio IV NVS Strategic Fund L.P. made an equity investment in Peptimmune.
In the event that Novartis exercises the option to PI-2301, Novartis would assume the global clinical development, manufacturing, and marketing of PI-2301 and all associated costs. Peptimmune would receive payments upon the option exercise and upon successful completion of certain development, regulatory, and commercial milestones. These payments together could total more than $500 million. In addition, Peptimmune shall be eligible to receive royalties on product sales. Additional terms were not disclosed.
"We believe that Novartis represents an outstanding future partner for Peptimmune and the global development of PI-2301. This option agreement provides Peptimmune with access to both Novartis' world class development expertise and the necessary capital to invest in this proprietary product," said Thomas P. Mathers, President and CEO of Peptimmune.
Todd Foley, Managing Director at MPM Capital commented, "Peptimmune and its world-leading expertise in peptide copolymers represent an attractive investment opportunity."
PI-2301 is a peptide copolymer developed using Peptimmune's novel platform peptide chemistry. PI-2301 is designed to enhance the regulatory response of the immune system, thereby controlling the pathogenic autoimmune response in certain diseases. PI-2301 is currently in Phase 1b development by Peptimmune.
About Peptimmune (www.peptimmune.com)
Peptimmune is a clinical stage biotechnology company developing peptide and peptide-copolymer therapeutics for the treatment of CNS and Autoimmune disorders. These therapies target MHC Class II molecules and modulating immune responses. Founded in 2002 and located in Cambridge, MA USA, the Company is led by an experienced management team and exploits its proprietary DEEP(TM) Technology to design peptides and peptide mixtures.
|SOURCE Peptimmune, Inc.|
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