Anadys Pharmaceuticals says it is receiving a $20 million dollar milestone payment from partner, Novartis, after a licensing deal the two firms signed earlier this year got the regulatory green light [[02/06/05d]].

The two firms signed on the dotted line last month in a deal that gives the Swiss giant the exclusive rights to develop, manufacture and commercialise ANA975, which is currently undergoing Phase I testing, for chronic hepatitis C. Novartis will also be able to develop the product in additional indications, including hepatitis B.

In addition to the $20 million, Anadys notes that it is eligible to receive up to $550 million in future milestones based on the product’s successful development and commerciaisation. A $10 million payment is due following a successful Investigational New Drug submission, which Anadys expects to file with the US Food and Drug Administration this summer.