Quark Pharma in option deal with Novartis that could earn it $670 million for siRNA drug QPI-1002; planning IPO

California, USA-based RNAi-based therapeutics specialist Quark Pharmaceuticals has granted Swiss drug major Novartis an option to obtain an exclusive worldwide license to develop and commercialize its p53 temporary inhibitor siRNA drug QPI-1002, currently the subject of a Phase II clinical trial.

Quark, which has its R&D headquarters in Israel, will receive initially a non-refundable fee of $10 million. In the event that Novartis exercises the option, the US firm would receive option exercise fees and milestone payments that could potentially total $670 million. In addition, Quark would be entitled to potential royalties on sales of licensed products.

Daniel Zurr, Quark's chief executive, stated: "We are very pleased to have reached this agreement with Novartis. We believe that Novartis represents an outstanding partner for Quark. With its world-leading expertise in transplantation and acute care, Novartis will provide invaluable support to the global development of QPI-1002, in development for the prevention of acute kidney injury (AKI) in patients undergoing cardiac surgery and for delayed graft function (DGF) in kidney transplant patients. The gene target of QPI-1002, p53, is a major player in apoptotic cell death; its temporary suppression rescues cells, prevents them from dying in conditions of severe stress such as ischemia, potentially opening opportunities for Novartis to novel treatments in additional indications."