Novartis said Wednesday it would buy Regulus Therapeutics and its experimental kidney drug, Farabursen, in a deal valued at up to $1.7 billion.
Under the terms of the agreement, the Swiss drugmaker, which has its U.S. headquarters in East Hanover, will make an upfront payment of $800 million to San Diego-based Regulus If Regulus’ lead drug candidate, Farabursen, gets regulatory approval, Novartis will pay another $900 million to the firm’s shareholders.
“With limited treatment options currently available for patients suffering from ADPKD, Farabursen represents a potential first-in-class medicine with a profile that may provide enhanced efficacy, tolerability and safety versus standard of care,” Shreeram Aradhye, president, development and chief medical officer, Novartis, said. “ADPKD is the most common genetic cause of renal failure worldwide. The team at Regulus has done meaningful foundational work with Farabursen, and we look forward to investigating its potential further as we aim to bring a better treatment option to patients in need.”
Farabursen is an investigational microRNA inhibitor designed to target miR-17 with preferential kidney exposure, aiming to reduce the growth of cysts and kidney size, as well as delay progression of disease severity in ADPKD.
Under the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, Novartis will, through an indirect wholly owned subsidiary, commence a tender offer to purchase all outstanding shares of Regulus common stock. Holders of Regulus common stock would receive $7 USD per share in cash at closing and a contingent value right (“CVR”) with a value of up to $7 per share payable in cash upon the achievement of a regulatory milestone.
Following completion of the tender offer, Novartis expects to merge the acquiring subsidiary with Regulus, resulting in Regulus becoming an indirect wholly owned subsidiary of Novartis.
The transaction is expected to close in the second half of 2025.
Novartis has recently received U.S. regulatory approvals for its drugs Fabhalta and Vanrafia for the treatment of different types of kidney disorders.
