Novartis to Acquire Regulus Therapeutics for $1.7B

On news this morning: Regulus Therapeutics (RGLS) to be acquired by Novartis. This is in alignment with the trend we’ve been seeing of M&A occurring earlier (Ph. 1 like this deal) or post-regulatory approval (ITCI, previously).

Novartis to Buy Regulus Therapeutics for as Much as $1.7 Billion (NVS, RGLS) - Bloomberg

Novartis has agreed to buy Regulus Therapeutics for up to $1.7 billion, giving the Swiss drugmaker access to an experimental drug to treat a life-threatening kidney disease.

Under the deal terms, Novartis will pay $7 per share in cash up front, or about $800 million, and another $7 per share to Regulus shareholders if the lead drug candidate, Farabursen, gets regulatory approval, the California-based biotech said on Wednesday. 

Farabursen is being tested in an early-stage study to treat autosomal dominant polycystic kidney disease, which causes fluid-filled cysts in the organ.

The condition affects about 500,000 people in the U.S. and has limited treatment options. Otsuka Pharmaceutical's drug, tolvaptan, is approved in the U.S. for patients with the condition, while PYC Therapeutics is developing a rival treatment.

Farabursen adds to Novartis' existing pipeline of kidney disease drugs, including those acquired through its $3.5 billion buyout of Chinook Therapeutics in 2023.