Conatus Pharmaceuticals Inc. (CNAT)

[Theo]

A "little" clarity on Novartis's intention on the afore-mentioned "combination therapies":

How Novartis benefits by exercising the option?

The collaboration with Conatus will help expand the treatment options available to people diagnosed with fatty liver disease at various stages and where there are no approved medicines available for the treatment. Novartis is already developing Farnesoid X receptor (FXR) agonists to be used in the treatment of chronic liver diseases. If Conatus' multiple Phase II b clinical trials with Emricasan show positive results, Novartis will move on to conduct the Phase III studies of Emricasan. In the Phase III studies of Emricasan, the trails will study the effectiveness of Emricasan as a single agent as well as its effectiveness when Emricasan is developed in combination with an FXR agonist.

Studies have shown that FXR agonist address three major aspects of NASH progression by reducing fat, inflammation and fibrosis in the liver. The US Food and Drug Administration (FDA) has granted Fast Track designation for Novartis' FXR agonists for NASH with liver fibrosis as well as for the development of Conatus' Emricasan in patients with NASH cirrhosis.

Novartis has also entered into collaboration with Allergan to conduct clinical trials to see effectiveness of the combination of Novartis' FXR agonist and Allergan's cenicriviroc (CVC) for the treatment of NASH with liver fibrosis. Novartis' collaboration with Conatus and Allergan is in-line with the Company's goals of developing new drugs for the treatment of chronic liver diseases.