June 13, 2006
Novartis, GlaxoSmithKline enter pipeline boosting deals
Novartis and GlaxoSmithKline announced separate deals with smaller biotech firms to ramp up their respective product pipelines. Novartis agreed to acquire NeuTec Pharma, a UK biopharmaceutical company specializing in hospital “super-bug” anti-infectives for $569 million. NeuTec’s Mycograb is awaiting European approval. Novartis said it plans to submit the drug for US regulatory approval in 2009. Another NeuTec drug, Aurograb, is scheduled for European and US regulatory filing in 2010. Meanwhile, GlaxoSmithKline agreed to pay Galapagos an upfront fee of $5.1 million plus milestone payments if two of the latter’s osteoarthritis products are launched. As part of the deal, GlaxoSmithKline will have exclusive options to further develop and commercialize these compounds on a worldwide basis.