Unnatural Products said on Wednesday that it has signed a licensing agreement with Novartis to develop therapies based on macrocyclic peptides for a cardiovascular program.
Under the terms disclosed, the California-based biotech will receive up to $100 million in an upfront payment. In addition, the company can earn as much as $1.7 billion tied to development, regulatory and commercial milestones. The deal also provides for tiered royalties on annual net sales, ranging from mid-single digits up to the low double-digits.
Novartis, the Swiss drugmaker, will assume primary responsibility for the program going forward. That includes overseeing clinical development, managing manufacturing and leading global commercialization of any medicines that result from the collaboration.
Unnatural Products did not provide further specifics about the cardiovascular program itself. The company described the therapeutic modality involved as macrocyclic peptides, a class of molecules shaped into a ring-like structure. That ring conformation is noted for giving these molecules certain advantages compared with conventional small-molecule drugs and larger biologic therapeutics.
The transaction structure separates early-stage economics from downstream performance: an upfront cash component followed by contingent milestone payments tied to development, regulatory approvals and commercial benchmarks, plus royalties linked to sales. Novartis will carry the operational responsibility for clinical trials, production and worldwide market access if the program advances.
Beyond the headline financial terms and the basic description of the modality, the companies have not released details on the exact target or stage of the program. As described, the arrangement places the responsibility for advancing the candidate through clinical and regulatory pathways squarely with Novartis, while Unnatural Products retains potential upside through the milestone and royalty provisions.
Summary
Unnatural Products has granted Novartis a license to develop macrocyclic peptide treatments for a cardiovascular program. The deal includes up to $100 million upfront, up to $1.7 billion in milestone payments and tiered royalties. Novartis will lead clinical development, manufacturing and commercialization. Specific program details were not disclosed.