Novartis AG (NVS Quick QuoteNVS - Free Report) entered into a license agreement with privately held Cyon Therapeutics Inc. for its anti-PCSK9 antibody, LGT-209, as per a press release issued by the latter.

Although financial details of the agreement were kept under wraps, the deal does cover regulatory and commercial milestones.

Cyon licensed LGT-209 from Novartis and obtained the global rights of the compound for use in the prevention and treatment of sepsis and Systemic Inflammatory Response Syndrome (SIRS).

Results of a phase I study on LGT209 showed that the candidate was well tolerated and effective in lowering cholesterol. This mechanism of action is expected to prevent sepsis and improve outcomes in patients with or at risk of sepsis. As a result, Cyon plans to move the candidate into a phase II clinical program (initiation expected in first half of 2017). It is also planning to initiate a private VC round.

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We note that Novartis is strategically reshaping its portfolio through acquisitions, licensing and partnerships.

Earlier this year, the company entered into a collaboration and license agreement with Xencor, Inc. (XNCR Quick QuoteXNCR - Free Report) to bolster its immuno-oncology pipeline. Under the deal, Novartis obtained rights to develop four additional bispecific antibodies and to use other Xencor proprietary antibody engineering technology for up to 10 additional biotherapeutic programs across its portfolio.

Novartis currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Pacira Pharmaceuticals, Inc. (PCRX Quick QuotePCRX - Free Report) and Corcept Therapeutics Incorporated (CORT Quick QuoteCORT - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).

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