Novartis has signed a research partnership and licensing agreement with Unnatural Products (UNP) valued at up to $1.7bn to develop macrocyclic peptide therapeutics targeting cardiovascular diseases.

The partnership combines UNP’s AI-driven macrocycle platform with the worldwide development and commercialisation expertise of Novartis, aiming to produce next-generation treatments for previously undruggable targets.

Under this agreement, Novartis will lead investigational new drug (IND)-enabling studies and oversee all subsequent clinical development, manufacturing, and global commercialisation of any resulting therapeutic products.

The focus lies on harnessing macrocyclic peptides, which merge the selectivity and potency of biologics with the drug-like properties of small molecules.

UNP is eligible for up to $100m in upfront and pre-IND milestone payments, as well as additional development, regulatory, and commercial milestone payments that could total up to $1.7bn.

The company will also be entitled to tiered royalties on annual net sales, ranging from the mid-single digits to low double digits.

UNP CEO and co-founder Cameron Pye said: “This collaboration validates the strength of our programme and highlights the ability of UNP’s platform to deliver differentiated macrocyclic therapeutics for high-value biological targets for chronic diseases with high unmet need.

“Novartis has built a highly respected engine in cardiovascular innovation, and we are excited to collaborate with them to unlock the full therapeutic potential of this asset. Together, we have the opportunity to advance medicines that could meaningfully improve patient lives across various diseases.”

Novartis discovery chemistry, biomedical research global head Muneto Mogi said: “Advances in macrocyclic chemistry are opening entirely new avenues in drug discovery, allowing us to engage targets at a dose and with a pharmacological versatility not possible with many other approaches.”