Novartis secures brain disease treatment technology, to pay Cyronax $125 million

Novartis will pay U.S. biotechnology company Cyronax $125 million (approximately 167.5 billion won) to secure technology for delivering treatments for brain diseases.

According to Biopharma Dive on the 16th (local time), Novartis exercised its option to acquire worldwide rights to a brain delivery platform developed by Cyronax.

Cyronax is a biotechnology company headquartered in Boston, U.S., with technology that crosses the blood-brain barrier, which makes it difficult for drugs to enter the brain.

The blood-brain barrier acts as a protective shield that prevents not only toxic substances but also beneficial drugs from entering the brain. Developing drugs that cross this barrier is considered a key challenge in treating nervous system diseases.

After the transaction closes, Cyronax will receive the upfront payment and retain development, manufacturing and commercialization rights to certain assets using the platform.

The company currently has three candidates in early clinical development and plans to continue their development with the upfront payment.

Shefali Agarwal, CEO of Cyronax, said, "This achievement comes at a pivotal time as we advance our clinical-stage pipeline and accelerate the development of promising new therapies."

Cyronax did not disclose details of the candidates but described them as "first-in-class or potentially best-in-class molecules."

The lead candidate, SIR2501, is being tested as a drug to prevent neuronal damage in amyotrophic lateral sclerosis (ALS) and chemotherapy-induced peripheral neuropathy and has received Fast Track designation from the U.S. Food and Drug Administration (FDA).

Another candidate, SIR4156, is being developed for metabolic dysfunction, while SIR9900 is being developed to treat inflammatory and immune diseases.

Novartis signed an agreement with Cyronax last year, securing an option period to evaluate the platform and an exclusive opportunity to acquire it. Under the agreement at the time, Cyronax could receive up to $175 million, including the upfront payment and milestone payments.