Genelabs to collaborate with Novartis on hepatitis C non-nucleoside drug candidates

By E. Janene Geiss

Philadephia, June 5 - Genelabs Technologies, Inc. said Monday that it has entered into a license and collaboration agreement with Novartis AG to develop and commercialize compounds from Genelabs' hepatitis C virus (HCV) non-nucleoside drug discovery program.

Under the agreement, Genelabs said it is eligible to receive about $20 million over a planned two-year research program, including initial up-front payments of $12.5 million, according to a company news release.

If all potential clinical, regulatory and sales milestones are met, additional payments to Genelabs could exceed $175 million, officials said.

Genelabs said it also is entitled to a royalty on net sales of products covered by the collaboration.

Genelabs said it is responsible for drug discovery research and Novartis is responsible for development and commercialization.

Novartis said it has an option to extend the research funding for a third year and has a right of first negotiation for Genelabs' HCV NS5a drug discovery compounds.

Lazard acted as financial adviser to Genelabs.

Genelabs is a Redwood City, Calif., biopharmaceutical company.

Novartis is a Basel, Switzerland, pharmaceutical and health care company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.