Novartis partners with UK biotech company Mereo BioPharma

Swiss pharma major Novartis (NOVN: VX) has announced a swap of clinical assets for equity with UK-based specialty biopharmaceutical company bio Mereo BioPharma Group, which focuses on rare and specialist disease areas.

The deal involves compounds in areas of unmet medical need including BPS-804, to improve bone density in brittle bone syndrome, BCT-197 for acute exacerbations in chronic obstructive pulmonary disease (COPD), and BGS-649 for obese men with hypogonadotrophic hypogonadism to normalize testosterone levels. Under the terms of the agreement, Novartis will have an equity stake in Mereo and will share in the success of the development of these compounds, including a share on milestones and royalties on future commercial sales.

David Epstein, head of Novartis Pharmaceuticals, said: “We are pleased that through this deal with Mereo we have found a way to work together to bring these valued innovations to patients.”