Idenix enters into development, commercialization pact with Novartis
Biopharmaceutical company Idenix Pharmaceuticals Inc has entered into an termination and revised relationship agreement pact with Novartis Pharma AG that restructures the development and commercialization collaboration that was established in May 2003, the news reports said.
As per the agreement, Novartis’ option right to license Idenix’s current and future development stage drug candidates in any therapeutic area has concluded.
Novartis will be payed a royalty based on the worldwide product sales of Idenix’s future hepatitis C virus drugs by Idenix. The royalty percentage will vary based on the commercialized Idenix HCV drug.
It also has a non-exclusive option to conduct clinical trials evaluating a combination of any of Idenix’s and Novartis’ HCV drug candidates.
Novartis’ ability to initiate combination of drug trial expires on seven year anniversary of executing the termination and revised relationship pact.
Idenix will no longer get royalty or milestone payments from Novartis based on the worldwide product sales of Tyzeka/Sebivo for treating hepatitis B.
Novartis will retain the rights of designating one member of the Idenix board of directors, reduced from 2 members, so long as it continues to own at least 15% of Idenix’s equity ownership.
Ron Renaud, Idenix’s President and CEO, said, “This agreement affords Idenix increased flexibility to optimize the value of or pipeline for the benefit of Idenix, our shareholders and ultimately HCV patients.” Mr. Renaud also said, “By regaining the worldwide rights to develop, commercialize and license all our drug candidates, we believe Idenix will be well-positioned to develop pan- genotypic all-oral direct-acting antiviral combination treatments with potential collaborators.”
Idenix Pharmaceuticals is engaged in discovery and development of drugs to treat human viral and other infectious diseases. Its current focus is to treat hepatitis C virus infections. Novartis is a multinational pharmaceutical company based in Switzerland. It manufactures drugs like clozapine, diclofenac, carbamazepine, valsartan and imatinib mesylate.