Novartis takes up option on potential NASH treatment

4 May 2017

Swiss pharma giant Novartis’ says it is taking up its exclusive license option for global development and commercialization of emricasan, a potential treatment for non-alcoholic steatohepatitis (NASH).

The exercise of the option under a December 2016 agreement with US biotech firm Conatus Pharmaceuticals (Nasdaq: CNAT) will be effective upon receipt of all required anti-trust approvals and payment of $7 million option exercise fee to Conatus. Novartis paid an upfront $50 million. Conatus shares leapt 23.5% to $8.11 in pre-market trading today.

This follows the initiation of the Phase IIb ENCORE-LF trial by Conatus evaluating emricasan in patients with decompensated liver cirrhosis caused by NASH. This collaboration has the potential to expand treatment options for people in various stages of fatty liver disease, where no approved medicines currently exist.

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