Biotech Values

[DewDiligence]

NVS acquires (private) Spinfex Pharma for $200M plus future considerations:

http://finance.yahoo.com/news/novartis-buys-pain-drug-firm-063518812.html

Swiss drugmaker Novartis AG boosted its presence in pain management on Monday by agreeing to buy U.S.-Australian biotech firm Spinifex Pharmaceuticals, the companies said in separate statements on Monday.

Spinifex said Novartis was paying $200 million upfront and Spinifex shareholders could get further payments based on clinical development and regulatory milestones. The transaction is expected to close in the second half of this year, pending regulatory approval.

The deal gives Novartis access to Spinifex's experimental neuropathic pain drug EMA401, which showed positive mid-stage Phase II clinical trial results in the treating post-herpetic neuralgia (PHN), a painful condition some people get after shingles.

…Because EMA401 acts outside the blood-brain barrier it can avoid common side effects such as dizziness or confusion seen with painkillers affecting the central nervous system.

Novartis plans to continue the development of EMA401 and intends to start Phase IIb clinical trials in patients with PHN or another condition called painful diabetic neuropathy, which is caused by diabetes.

…Established in 2005 and based in Stamford, Connecticut and Melbourne, Australia, Spinifex is backed by venture capital groups including Novo A/S, Canaan Partners, GBS Venture Partners, Brandon Capital Partners, Uniseed and the University of Queensland.