Novartis Inks $1B+ Deal with Matchpoint Therapeutics for Inflammatory Disease Drug Discovery

Novartis has entered into a significant drug discovery collaboration with Matchpoint Therapeutics, potentially worth over $1 billion, to develop novel treatments for inflammatory diseases. The partnership, announced on Thursday, July 24, 2025, centers around Matchpoint's Advanced Covalent Exploration (ACE) platform and aims to identify oral inhibitors targeting an undisclosed transcription factor linked to various inflammatory conditions.

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 all molecules resulting from the collaboration. The deal includes potential milestone payments of up to $1 billion, contingent on future development and commercial success, as well as tiered sales royalties.

Matchpoint's ACE Platform

At the core of this partnership is Matchpoint's proprietary ACE platform, which employs a novel approach to drug discovery:

• The platform screens the proteome to identify binding sites on druggable proteins, with a particular focus on hard-to-find cryptic binding sites.
• Matchpoint emphasizes the use of covalent chemistry in developing therapeutic molecules, which permanently bond to target proteins.
• This approach is touted to offer improved potency, greater selectivity, and lower systemic exposure compared to traditional small molecule inhibitors or antibodies.

"The durable target engagement achieved with covalent chemistry imparts improved potency, greater selectivity, and lower systemic exposure than otherwise possible," Matchpoint stated.

Novartis' Strategic Acquisitions

This latest collaboration aligns with Novartis' recent strategy of bolstering its pipeline through targeted acquisitions and partnerships:

• In June 2025, Novartis entered a similar deal with ProFound Therapeutics, investing $25 million upfront with $750 million in potential milestones for novel cardiovascular therapies.
• April 2025 saw the $800 million upfront acquisition of Regulus Therapeutics, granting Novartis access to Regulus' miRNA pipeline, including farabursen for polycystic kidney disease.

These moves reflect CEO Vas Narasimhan's stated strategy to "look for primarily bolt-on acquisitions that we think will bolster our growth in the 2030 and beyond period," as outlined in the company's end-of-year 2024 report.