Novartis to Acquire Spinifex for $200 M
Novartis has agreed to acquire Spinifex Pharmaceuticals, Inc., a US and Australian-based, privately held development-stage company, focused on developing a peripheral approach to treat neuropathic pain for an upfront cash consideration of $200 million plus undisclosed clinical development and regulatory milestone payments.
The acquisition is centred on Spinifex's lead candidate EMA401, a l angiotensin II type 2 (AT2) receptor antagonist, being developed as a potential first-in-class oral treatment for chronic pain, particularly neuropathic pain, without central nervous system side effects.
Under the terms of the deal, in addition to the upfront payment of $200 million from Novartis, Spinifex shareholders are eligible to receive payments contingent on future clinical development and regulatory milestones. The transaction is expected to close in the first half of 2015, subject to the receipt of clearance under the Hart-Scott-Rodino Act and customary closing conditions.