Novartis AG (NYSE:NVS) has invested an undisclosed amount of money in Perlara PBC as it ramps up its efforts on the development of treatments for Lysosomal storage disorders. The two companies are to begin the joint venture by focusing their efforts and resources on the development of lead program in Niemann-Pick disease type C.
Perlara Investment
Perlara has made a name for itself on the development of treatments based on the CRISPR-engineered animal platform. By relying on this model, the company believes it will be able to develop cures faster and at lower costs.
“Our expertise in whole-animal phenotypic screens, model organism genetics and automation is complemented by Novartis’ world-class pathway and chemical biology expertise, clinical experience, and global leadership,” said Perlara CEO Ethan Perlstein.
The investment from Novartis according to the CEO will help take the company’s platform technology to another level. The executive also expects the investment to fuel the development and discovery of programs that have the potential to address diseases with high unmet needs.
While the San Francisco-based startup has carried out a number of seed funding rounds, an investment from Novartis is the first of its kind from a giant biopharmaceutical company. The startup has already raised more than $7 million since 2014 its projects having attracted interests from the likes of Retrophin, Slow Ventures and Techammer.
Cerulean Investment
In addition to the Perlara investment, Novartis has also set its eyes on Cerulean Pharma as part of a discovery and development of a nanoparticle-drug conjugates NDCs. The pharmaceutical giant is to pay $5 million in upfront fees as part of the deal that will also target up to five candidates.
Cerulean Pharma Inc (NASDAQ:CERU) is also to earn $41.5 million on all programs that achieve preclinical and R&D milestones. Sales milestones are to earn the company $185 million. Under the deal which could be worth $1.2 billion in milestone payments, Cerulean is to combine its Dynamic Tumor Targeting technology with Novartis compounds. The company is to be responsible for development and commercialization of the five targets in development.
Novartis stock price remained unchanged on Thursday trading session having gained 0.34% in market share to close at $75.92 a share.
