Novartis agrees new drug licensing deal with Aveo

Novartis has agreed an exclusive worldwide license agreement with Aveo for the development and commercialisation of a first-in-class potent humanised inhibitory antibody.

AV-380 targets growth differentiation factor 15 and holds promise as a potential treatment for cachexia secondary to multiple disease states, including cancer, chronic kidney disease, congestive heart failure and chronic obstructive pulmonary disease.

The deal pertains to AV-380 and related antibodies, including modified or derivative forms of any such antibody. It will see Aveo receive an upfront payment of $15 million (9.57 million pounds), as well as clinical, sales and regulatory-based milestone fees of up to $311 million.

Novartis will be responsible for all clinical development, manufacturing and commercialisation activities and costs associated with the product.

Michael Bailey, Aveo's president and chief executive officer, said: "Novartis brings resources and expertise to bear on advancing this program, which we believe provides the optimal path forward toward realising its full potential."

Earlier this month, the firm completed the sale of its influenza vaccines business to CSL, allowing it to focus on core operations.