Novartis in $375m lung treatment deal

SWISS drugmaker Novartis unveiled one of the biggest-ever deals in the European biotech sector yesterday, taking on an experimental treatment for lung disease from two British firms for up to $375 million.

Vectura Plc and privately-owned Arakis Ltd said Novartis had agreed to develop and commercialise their AD 237 treatment for chronic obstructive pulmonary disease (COPD), which is primarily caused by smoking. Arakis said the lucrative deal took the company one step closer to a stock market flotation.

Each company will receive an initial $15m and could get up to a further $172.5m as clinical, regulatory and commercialisation milestones are passed.