Novartis and Cambridge, UK-based Dunad Therapeutics have entered into a strategic collaboration – worth up to $1.3bn – to generate novel oral covalent and protein degrading small molecule drugs.
As part of the collaboration, Dunad will apply its own platform to generate the novel covalent and targeted protein degrading small molecule drugs with a focus on up to four drug targets agreed with Novartis.
Dunad’s platform utilises mono-valent small molecules to induce selective degradation of disease-causing and often undruggable proteins via direct modification of the target.
While Dunad will be responsible for programme execution up to lead optimisation, Novartis will contribute target and ligand knowledge, plus access to unique assays and models and will also fully fund the research collaboration.
In return, Novartis will have an exclusive option to develop and commercialise products resulting from the programmes – directed against up to four drug targets.
If Novartis chooses to exercise this option, the company will then assume responsibility for future development, manufacturing and global commercialisation of the small molecule drugs generated against the agreed targets.
Dunad is set to receive a $24m upfront payment and equity investment under the terms of the deal, with the UK-based firm eligible for milestone payments that could reach up to $1.3bn and royalties.
“We are thrilled to have entered this collaboration with Novartis, which has already established a world leading position in the protein degradation space. This deal highlights the clear benefits our platform promises for the development of next-generation targeted protein degrader therapeutics,” said Patrick Gunning, co-founder, acting chief executive officer and chief scientific officer of Dunad.
“We are confident that with our approach of inducing degradation via direct modulation of target proteins with mono-valent small molecules, we can significantly expand the boundaries of targeted protein degraders as a therapeutic modality,” he added.
