Novartis bets on experimental cancer treatment from US firm

Keystone / Georgios Kefalas

The Swiss pharma giant has made an offer to buy the rights to a tumor inhibiting treatment from Clovis Oncology in Colorado, which has filed for bankruptcy protection.

Novartis has committed to pay $50 million (just under CHF47 million) upfront for all rights to the experimental cancer treatment. In addition, the Basel-based company has agreed to pay out up to an additional $333.75 million upon the successful reaching of development and regulatory milestones and $297 million in later sales milestones.

The experimental treatment and imaging agent known as FAP-2286 is in a phase I/II study, called Lumière, for its ability to bind to a fibroblast activating protein (FAP), Clovis said in a statement on Monday. It is the first peptide-targeted radionuclide therapy (PTRT) and imaging agent targeting FAP to enter clinical development.

The acquisition by Novartis is what is known as a “stalking horse purchase”. Clovis intends to submit the Novartis offer to other potential buyers in the hope of attracting competing proposals. These will be reviewed with advisers in a proceeding supervised by the U.S. Bankruptcy Court for the District of Delaware.