Novartis AG (NVS.US) will pay British biotech firm Relation Therapeutics Ltd. up to $1.7 billion to collaborate on discovering drug targets for allergic diseases. Relation CEO David Roblin stated in an interview that the partnership aims to combine Novartis’ expertise in immunodermatology with the UK company’s AI-powered drug discovery platform. The platform leverages patient data, including human tissue samples, to uncover the genetic basis of disease manifestations.
Relation’s investors include DCVC and NVentures, the venture capital arm of NVIDIA (NVDA.US). The company will receive an initial $55 million, comprising upfront payments, equity investments, and R&D funding. Additionally, Relation is eligible for milestone payments totaling up to $1.7 billion, along with tiered royalties based on product sales.
This year, Novartis has been actively pursuing deals, most notably its $12 billion acquisition of Avidity Biosciences (RNA.US)—its largest buyout in over a decade. The Swiss pharma giant faces mounting pressure to boost post-2025 sales as it contends with cheaper generics competing against key drugs, including its blockbuster heart failure treatment Entresto.
Relation explained that atopic diseases stem from immune system dysfunction, triggering allergic reactions that affect hundreds of millions globally. The company focuses on accelerating the identification of disease-causing genes and selecting targets with higher potential for successful clinical trials. Roblin noted that 75% of drugs fail in Phase II trials due to inadequate efficacy or safety concerns, highlighting the need for deeper biological understanding upfront.
Negotiations with Novartis began during the J.P. Morgan Healthcare Conference, where Roblin met Fiona Marshall, President of Novartis’ Biomedical Research. The collaboration in immunology and allergies took shape over a year of joint research planning. Earlier in 2024, Relation struck a similar agreement with GlaxoSmithKline.
Novartis has also agreed to acquire Tourmaline Bio for $1.4 billion, gaining a promising systemic inflammation therapy, and Regulus Therapeutics for up to $1.7 billion. Additionally, its purchase of Anthos Therapeutics expanded its cardiology portfolio with a stroke-prevention drug.
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