Novartis Acquires Regulus Therapeutics in $1.7 Billion Deal, Boosting Oligonucleotide Pipeline

Novartis has announced its acquisition of Regulus Therapeutics, a San Diego-based biotech company, in a deal worth up to $1.7 billion. The acquisition, which includes an $800 million upfront payment, significantly strengthens Novartis' oligonucleotide pipeline and expands its presence in the rare disease space.

Farabursen: A Promising Treatment for ADPKD

At the heart of the acquisition is Regulus' lead asset, farabursen, an miRNA-targeting oligonucleotide in early-stage development for autosomal dominant polycystic kidney disease (ADPKD). This rare, hereditary condition affects approximately 160,000 patients in the United States and can lead to kidney failure if left untreated.

Farabursen works by binding to miR-17, a microRNA molecule associated with the suppression of genes responsible for producing polycystin 1 (PC1) and 2 (PC2) proteins. By disrupting this pathway, farabursen aims to correct the underlying pathology of ADPKD, potentially reducing cyst growth and preserving kidney function.

The drug is currently in a Phase Ib study, which is expected to complete later this year. Its regulatory approval would trigger Novartis' contingent value right offer to Regulus shareholders.

Deal Structure and Financial Details

Under the terms of the agreement, Novartis will acquire all outstanding shares of Regulus for $7 per share, representing a 108% premium to the biotech's closing price on Tuesday. In addition to the $800 million upfront payment, Regulus shareholders will receive a $7-per-share contingent value right, payable upon achieving certain milestones.

The boards of directors of both companies have unanimously approved the transaction, which is expected to close in the second half of 2025, subject to customary closing conditions.

Novartis' Strategic Expansion

This acquisition aligns with Novartis' stated business development strategy for 2025. CEO Vas Narasimhan had previously indicated the company's intention to pursue bolt-on acquisitions that would bolster growth beyond 2030.

The Regulus deal follows Novartis' recent $3.1 billion acquisition of Anthos Therapeutics and its anticoagulant antibody abelacimab, further demonstrating the company's commitment to expanding its pipeline through strategic acquisitions.

In addition to farabursen, Novartis will gain access to Regulus' other nephrology assets and an undisclosed central nervous system program, further diversifying its therapeutic portfolio.