Novartis Inks $1.3B Protein Degradation Deal With UK's Dunad

The U.K.-based Dunad Therapeutics has entered a strategic collaboration and license agreement with Novartis AG NVS to generate orally bioavailable covalent and protein degrading small molecule drugs.
Under the new deal, Dunad is tasked with deploying its platform to generate new candidates against up to four targets and steer those programs up to lead optimization.
Novartis will contribute target and ligand knowledge and assays & models and will fully fund the research collaboration.
Novartis has an exclusive option to develop and commercialize products against up to four drug targets.
Under the agreement terms, Dunad will receive $24 million in an upfront payment, equity investment, and research funding.
Dunad will also be eligible for milestone payments that could aggregate up to $1.3 billion and royalties.
Price Action: NVS shares closed down 0.36% at $83.75 on Tuesday.