Novartis expands buying spree with acquisition of NeuTec Pharma

Novartis has made a cash offer of $569 million to acquire NeuTec Pharma, a British biotechnology firm that specializes in hospital anti-infective therapies. NeuTec's board of directors has unanimously recommended the offer, and Novartis says shareholders representing 39% of NeuTec support the deal. The acquisition of NeuTec, which has two antibody drugs in clinical development, would be an entry for Novartis into the fast-growing market for novel anti-infectives. It would also expand the drug firm's range of specialty pharmaceuticals sold to hospitals. NeuTec's Mycograb, an antibody fragment intended for use with antibiotics in treating invasive Candida infections, has been submitted to European Union regulators for approval; submission to FDA is scheduled for 2009. Aurograb, an antibody fragment for treatment of staphylococcus infections, also in conjunction with antibiotics, is on track for FDA submission in 2010, according to Novartis. The Swiss drug major also announced last week that it is acquiring the rights to Human Genome Science's hepatitis C drug Albuferon, an investigative drug entering late-stage clinical trials. Novartis will pay HGS an up-front fee of $45 million. With clinical development and commercial milestone payments, including a $47.5 million payment when the first patient is dosed in a Phase III clinical trial, the deal has a potential value of $507 million, according to HGS. Novartis earlier this year signed a deal worth up to $525 million for a hepatitis C drug candidate developed by Idenix Pharmaceuticals. Novartis took a 51% stake in Idenix in 2003.