Novartis has agreed to purchase a US and Australian-based privately held development stage company Spinifex Pharmaceuticals for an undisclosed amount.
According to Business Spectator, the deal is valued at more than $200m and will also include undisclosed ‘significant’ milestone payments.
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Spinifex specialises in therapies for chronic pain and is currently focused on developing EMA401, a novel angiotensin II Type 2 receptor (AT2R) antagonist to treat neuropathic pain.
EMA401 is a differentiated treatment for neuropathic pain acting outside the blood-brain barrier, which is expected to avoid significant central nervous system side-effects.
Novartis Pharmaceuticals head David Epstein said: "Neuropathic pain is a chronic and debilitating condition with high unmet need. EMA401 could provide a novel, differentiated treatment approach to provide relief for patients and healthcare providers worldwide."
In a Phase II clinical trial, Spinifex’s EMA401 was assessed for its efficacy in post-herpetic neuralgia, a painful condition that develops in some people following herpes zoster (shingles).
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By GlobalDataThe trial also observed that EMA401 showed no central nervous system side-effects or any serious adverse consequences.
Neuropathic pain is a chronic condition with high unmet medical need as approximately 40% of patients do not respond to current first-line treatment and a further 25% do not respond to second-line treatment options.
It is estimated that up to 8% of the adult population suffer from chronic pain with neuropathic characteristics.
