Novartis Enters Billion-Dollar Biotech Deal with Generate
In a groundbreaking move, Novartis has signed a $1 billion-plus deal with Generate:Biomedicines, a company founded by Flagship Pioneering. This agreement aims to develop protein therapeutics for various medical conditions. While specific diseases have not been disclosed, the partnership is described as a "multi-target collaboration".
Financial Terms and Strategic Goals
Under the terms of the collaboration, Novartis will provide $65 million in cash upfront, which includes a $15 million equity purchase in Generate. Beyond this initial investment, Generate stands to gain more than a billion dollars through milestone payments and royalties that could reach low double-digit percentages.
The Role of Generative AI in Drug Discovery
Central to this collaboration is Generate's generative AI platform. This technology combines machine learning with high-throughput experimental validation. The aim is to revolutionize programmable biology and accelerate the creation of new therapeutics. Novartis' expertise in target biology and clinical development complements this cutting-edge platform.
Statements from Key Players
Generate's CEO, Mike Nally, expressed enthusiasm about the partnership, stating that collaborating with Novartis allows them to expand the use of their platform to address more unmet medical needs. He emphasized the potential of programming biology to create better and faster medications for patients.
Generate's Past Collaborations and Financial History
Generate has previously partnered with Amgen in a deal worth up to $1.9 billion, focusing on developing multiple therapeutic programs. This history of collaboration with big pharmaceutical companies underscores Generate's capability and innovation in biotech.
Moreover, Generate has demonstrated financial strength through significant fundraises, including $273 million in a Series C round and $370 million in a Series B.
Current and Future Developments
Currently, Generate has two clinical candidates: GB-0669, a monoclonal antibody targeting the COVID-19 virus' spike protein, and GB-0895, aimed at treating severe asthma. Looking ahead, Generate plans to advance four to five additional assets into clinical trials within the next two years. Their pipeline includes a bispecific targeting non-small cell lung cancer and an armored CAR-T for solid tumors.
In partnership with the University of Texas MD Anderson Cancer Center and the Roswell Park Comprehensive Cancer Center, Generate is also developing a preclinical antibody-drug conjugate and a protein binder to neutralize ADC toxins. These innovative projects highlight Generate's commitment to advancing biotechnology and addressing critical health challenges.
