Novartis to license Idenix’s Valopicitabine

Swiss pharmaceuticals firm Novartis has signed a licensing deal with US-based Idenix for its Valopicitabine drug.

Valopicitabine is being developed to treat hepatitis C and the deal, which could be worth up to $525 million, will give Novartis exclusive rights to promote the drug in certain countries.

Under the terms of the deal, Idenix may receive up to $70 million in licence fees and a maximum of $455 million in milestone payments upon achieving regulatory filings in key markets.

The two firms will co-promote the drug, if trials are successful, in the US, UK, France, Germany, Italy and Spain with Novartis holding exclusive rights elsewhere.

Valopicitabine is an investigational compound for the treatment of hepatitis C and in initial trails it was found to reduce viremia in patients infected with the genotype one strain of hepatitis C.

Around 170 million people worldwide are said to suffer from the deadly disease and the number of deaths from it in the US is expected to triple by 2010.

The deal will benefit both companies with Novartis gaining the exclusive marketing rights in some countries while Idenix will gain the Swiss firm’s clinical and marketing experience.

Expenses associated with the development of Valopicitabine incurred by Idenix subsequent to the date of licence will also be reimbursed by Novartis

Novartis’ support for the product comes just days after Idenix said it was lowering doses and delaying late-stage trials to avoid gastro-intestinal problems.

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