Novartis takes up option to acquire IFM Due

Privately-held US biotech IFM Therapeutics today announced that Swiss pharma giant Novartis (NOVN: VX) has exercised its option to acquire all of the outstanding capital stock of its subsidiary, IFM Due.

Launched in February 2019, with a focus on developing small molecules that inhibit the cGAS-STING pathway, the company entered into an option and collaboration agreement with Novartis in September 2019, whereby Novartis made 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.

Under the terms of the option exercise, IFM received $90 million in upfront payment and will be eligible for up to $745 million in milestone payments, adding up to $835 million in total consideration. This marks Novartis' third M&A deal so far this year.