Novartis to buy Corthera for $120 million, plus up to $500 million on success of ADHF drug relaxin

Novartis will gain exclusive worldwide rights to relaxin, a recombinant version of a naturally occurring human peptide, through the acquisition of the privately held US biopharmaceutical company Corthera. Relaxin is currently in Phase III clinical trials as a potential treatment option for patients with acute decompensated heart failure (ADHF).

Under the terms of the transaction, Swiss drug major Novartis will acquire all of the outstanding shares of Corthera's stock for $120 million. Furthermore, Corthera's current shareholders will be eligible to receive additional payments of up to $500 million that are contingent on clinical milestones, regulatory approval of relaxin and the achievement of commercialization targets. This transaction, which is subject to customary regulatory approvals, is expected to be completed in the first quarter of 2010.

Novartis will assume full responsibility for the development and commercialization of relaxin, with regulatory submissions in the US and Europe planned for 2013. The US Food and Drug Administration (has granted Fast Track designation to relaxin as part of its program to expedite the review of new drugs intended to treat serious or life-threatening conditions that can potentially address unmet medical needs.