Novartis Bets Up to $1.7B in Cardio-Focused Peptide Partnership

 

Novartis and Unnatural Products did not specify which disease targets they’re going after, only noting that the latter’s macrocyclic platform can generate potentially next-generation therapies that could apply to cardiovascular conditions.

Novartis is partnering with California’s Unnatural Products for $100 million upfront to advance novel macrocyclic peptides and unlock previously undruggable targets, potentially in the cardiovascular disease area.

Under the terms of the agreement, announced in a news release Wednesday, Novartis is offering up to $1.7 billion in development, regulatory and commercial milestones in addition to the upfront fee. The biotech will also be eligible for royalties on net sales of products that make it to the market.

At the heart of the partnership is UNP’s AI-driven engine that produces therapeutic synthetic peptides that can mimic the function of natural molecules called macrocycles, which can engage complex targets like biologics but are able to pass through the cell membrane easily like small-molecule drugs, according to the biotech’s website.

This therapeutic approach—which UNP said offers “the best of both worlds”—has attracted investments from other biopharma players, including Merck in January 2024 for up to $220 million and argenx in July last year for potentially $1.5 billion.

Novartis and UNP did not specify how many programs they plan to work on, nor did they reveal what particular disease targets they will address. The companies only said that the macrocyclic platform could yield “next-generation therapeutics with potential applications in the cardiovascular disease area.”

Novartis will take charge of advancing the macrocyclic assets through investigational new drug-enabling studies and clinical development, as well as subsequent manufacturing, regulatory and commercialization activities.

The UNP partnership will allow the pharma “to engage targets at a dose and with a pharmacological versatility not possible with many other approaches,” Muneto Mogi, Novartis’ global head of Global Discovery Chemistry, Biomedical Research, said in a statement.

The alliance also fits into the company’s broader strategy of bulking up its early portfolio of products. During Novartis’ full-year 2025 earnings call, CEO Vas Narasimhan told investors that the pharma will continue “to build out our early-stage pipeline,” looking for “deals in the sub-$2-billion range.”

In recent months, the pharma has indeed partnered with a clutch of biotechs for immature drug candidates. In September last year, Novartis bet up to $5.7 billion for Monte Rosa Therapeutics’ Phase 1 molecular glue for immune-mediated indications. Earlier this year, the company linked up with China’s SciNeuro for $165 million upfront and up to $1.5 billion in milestones, gaining a worldwide license to an early-stage anti-amyloid antibody for Alzheimer’s disease.

https://www.biospace.com/deals/novartis-bets-up-to-1-7b-in-cardio-focused-peptide-partnership