Novartis and Enanta Pharmaceuticals agree HCV collaboration

Novartis has entered into a new collaboration and license agreement with Enanta Pharmaceuticals on the development of a new treatment for hepatitis C virus (HCV).

The collaboration will focus on the worldwide development, manufacturing and commercialisation of Enanta's lead development candidate EDP-239, which has been created through the company's NS5A HCV inhibitor programme.

NS5A is a non-structural protein essential to viral replication, which has therefore been identified as an important target for antiviral drug development.

Enanta will receive an upfront payment of $34 million (21.64 million pounds) under the agreement, with a further $406 million available if clinical, regulatory and commercial milestones are met.

Dr Jay Luly, president and chief executive officer for Enanta Pharmaceuticals, said: "Novartis is a recognised leader in the field of HCV and access to its global expertise … will support the successful development and commercialisation of products targeting NS5A."

Last month, Novartis published its financial report for 2011, during which the company achieved year-on-year net sales growth of 16 percent.