Still seeking smaller bolt-ons, Novartis takes out gene therapy play Kate

ARTICLE | Deals

Deal for up to $1.1B with ‘significant upfront payment’ rewards syndicate including Westlake and Versant, gives pharma three preclinical programs for muscular dystrophies

By Paul Bonanos, Director of Biopharma Intelligence

November 21, 2024 8:40 PM UTC

Updated on Nov 21, 2024 at 11:11 PM UTC

In keeping with CEO Vas Narasimhan’s preference to restrict Novartis’ M&A deals to buyouts for less than $5 billion, the pharma has added three preclinical gene therapies for neuromuscular disorders via its takeout of privately held Kate Therapeutics.

Novartis AG (SIX:NOVN; NYSE:NVS) didn’t disclose the upfront price for Kate Therapeutics Inc., but said the deal’s total value could escalate to $1.1 billion including contingent milestones. The deal includes an upfront payment “significantly greater than Kate’s $51 million series A round last year,” according to a source familiar with the deal...