Novartis Secures $1B+ Drug Discovery Deal with Matchpoint Therapeutics

Novartis has entered into a significant drug discovery collaboration with Matchpoint Therapeutics, potentially worth over $1 billion, to develop new treatments for inflammatory diseases. The deal, announced on Thursday, centers around Matchpoint's Advanced Covalent Exploration (ACE) platform and aims to identify novel oral inhibitors targeting an undisclosed transcription factor.

Deal Structure and Financial Terms

Under the agreement, Novartis will provide Matchpoint with $60 million in upfront payments and research funding. In return, the pharmaceutical giant secures global development and commercialization rights to any molecules resulting from the partnership. The deal includes up to $1 billion in future development and commercial milestones, along with tiered sales royalties.

This collaboration aligns with Novartis' recent strategy of pursuing "bolt-on acquisitions" to bolster its growth beyond 2030, as outlined by CEO Vas Narasimhan in the company's end-of-year 2024 report.

Matchpoint's ACE Platform and Covalent Chemistry

At the heart of this partnership is Matchpoint's proprietary ACE platform, which screens the proteome for binding sites on druggable proteins. The platform specializes in identifying cryptic binding sites that are typically more challenging to target.

Matchpoint emphasizes the use of covalent chemistry in its therapeutic molecules. These compounds permanently bond to target proteins, potentially offering advantages over traditional small molecule inhibitors or antibodies. According to Matchpoint, "The durable target engagement achieved with covalent chemistry imparts improved potency, greater selectivity, and lower systemic exposure than otherwise possible."

Novartis' Recent Strategic Moves

This deal with Matchpoint is part of a series of recent investments by Novartis to strengthen its pipeline and discovery capabilities. Notable recent transactions include:

1. A $775 million deal with ProFound Therapeutics, announced a month ago, to explore novel cardiovascular therapies using proteome analysis.
2. The $800 million acquisition of Regulus Therapeutics in April, granting Novartis access to Regulus' miRNA pipeline, particularly farabursen for polycystic kidney disease.

These strategic moves demonstrate Novartis' commitment to expanding its drug discovery capabilities and pipeline in key therapeutic areas.