Novartis enters option and deal with IFM Therapeutics, worth up to $840 million

In a second deal between the companies, privately-held Boston, USA-based biotech IFM Therapeutics, through its IFM Due unit, has reached a collaboration and exclusive option agreement with Swiss pharma giant Novartis (NOVN: VX) to develop a suite of immunotherapies that inhibit the cGAS/STING pathway to treat a range of serious inflammatory and autoimmune diseases.

Under the terms of the agreement, Novartis will make fixed payments sufficient to fully finance IFM Due's research and development costs for the cGAS/STING program in exchange for the option to acquire the IFM Due subsidiary. Upon option exercise, IFM Due's shareholders will be entitled to receive up to $840 million, including an upfront payment upon option closing and other contingent consideration.

Adds to previous deals