Cadent Therapeutics accepts takeover bid from Novartis

Privately-held US biopharma firm Cadent Therapeutics has reached a definitive agreement with Novartis (NOVN: VX), under which the latter will acquire all of the outstanding capital stock of Cadent, and marking the third M&A deal for the Swiss pharma giant this year.

On the closing of the deal, Cadent will receive a $210 million upfront payment and will be eligible for up to $560 million in milestone payments, for a total potential consideration of $770 million. Cadent Therapeutics launched in 2017 through the merger of Luc Therapeutics and Ataxion Therapeutics, with a focus on small molecules targeting neuronal ion channels.

The deal builds on Novartis expertise in neuroscience and advances the company’s development of potential neuropsychiatric medicines, said the Swiss firm, which in September closed the $150 million (plus $130 million contingent) acquisition of US firm Vedere Bio. It also acquired US firm Amblyotech, but financial terms of the deal were not disclosed.