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Purchase leaves biotech’s remaining assets on the table.
Novartis, a global healthcare company, has officially reached an agreement with Avrobio, a biotech organization, to acquire AVR-RD-04, an investigational hematopoietic stem cell gene therapy program for the treatment of the rare genetic condition cystinosis. Per the deal, Novartis will pay $87.5 million without committing milestones or royalties to land the clinical-phase asset. This announcement comes after an initial report of the healthcare company preparing for a full takeover.
The deal represents pressure currently facing Avrobio. With its stock trading below $1 in recent months, the biotech’s ability to raise more money from investors is limited, leading it to identify the Novartis deal as a way to boost its bank balance while narrowing its pipeline.
Reference: Novartis to buy Avrobio gene therapy for $88M, leaving rest of the biotech on the shelf. May 22, 2023/ Fierce Biotech