Pharmaceutical firm Novartis agreed yesterday to acquire US-based cognitive, mood and movement disorder therapy developer Cadent Therapeutics in a deal sized at up to $770m, enabling conglomerate Access Industries to exit.
Cadent’s shareholders will receive a $210m upfront cash payment in addition to up to $560m in payments linked to milestone achievements. Its board and shareholders have already approved the acquisition, which is expected to close during the first quarter of 2021.
Founded in 2017 from the merger of Luc Therapeutics and Ataxion Therapeutics, Cadent has been developing drugs targeted at the central nervous system (CNS) that trigger neuronal ion channels to relieve symptoms of cognitive, mood or movement disorders.
Novartis will now absorb the company’s portfolio, including a lead programme consisting of two clinical-stage ion channel modulators for schizophrenia and major depression: CAD-9303 and MIJ-821.
The latter drug was licensed to Novartis for development in 2015. Novartis has also now acquired CAD-1883, a clinical-stage candidate for movement disorders, together with Cadent’s preclinical research.
Cadent had last raised money in a $40m series B round in late 2018 co-led by financial services firm Cowen’s Healthcare Investments unit with Atlas Venture. It included Novartis’s Institutes of Biomedical Research and Access Industries’ Clal Biotechnology Industries unit, as well as Qiming Venture Partners.
Prior to the merger, Luc Therapeutics had raised at least $17.7m from investors including Access Industries’ BridgeGap Ventures unit, Atlas Venture and Slater Technology Fund.
Ataxion had secured $17m in a 2014 series A round featuring Atlas Venture and pharmaceutical company Biogen Idec.