We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Novartis (NVS) to Acquire Subsidiary of IFM Therapeutics
Read MoreHide Full Article
Novartis AG (NVS - Free Report) announced that it will acquire IFM Tre, a subsidiary of IFM Therapeutics LLC.
The acquisition will add a broad portfolio of immunomodulatory medicines, focused on developing anti-inflammatory medicines targeting the NLRP3 (nucleotide-binding domain, leucine-rich repeat-containing receptor pyrin domain containing 3) inflammasome. The acquisition will give Novartis full rights to IFM Tre's portfolio of NLRP3 inhibitors.
The three inhibitors include IFM-2427, a clinical-stage systemic antagonist for an array of chronic inflammatory disorders, including gout, atherosclerosis and nonalcoholic steatohepatitis (NASH); a preclinical-stage gut-directed molecule for the treatment of inflammatory bowel disease; and a preclinical-stage central nervous system (CNS)-penetrant molecule. The acquisition is expected to be complementary to Novartis’ pipeline of anti-inflammatory medicines.
The transaction will close in the second quarter. Per the agreement, Novartis will acquire all of the outstanding capital stock of IFM Tre. In addition, IFM Tre will receive an upfront payment and will be eligible for downstream milestone payments.
Last year was a transformative year for Novartis, as it restructured its business to focus on becoming a core drug-focused company, powered by data and digital technologies.
The company earlier entered into a clinical development agreement with Pfizer (PFE - Free Report) . The agreement includes a clinical trial to evaluate the combination of tropifexor (LJN452) and one or more Pfizer compounds for the treatment of NASH.
NASH is a key target area for most pharma/biotech companies, given the market potential. Key players with promising candidates in the space include Intercept Pharmaceuticals, Inc. , which recently announced positive top-line results from its pivotal phase III REGENERATE study on obeticholic acid (OCA) in patients with liver fibrosis due to NASH. Allergan plc too has an interesting candidate, cenicriviroc in its pipeline for the treatment of NASH.
Shares of the company have gained 13.5% in the past six months compared with the industry's 3.6% growth.
Meanwhile, Novartis is looking to solidify its presence in the gene-therapy space. It acquired U.S.-based clinical-stage gene-therapy company, AveXis, Inc. The company also acquired Endocyte to expand expertise in radiopharmaceuticals. We expect more acquisitions in the coming months, as the company looks to further restructure its business.
Zacks Rank
Novartis currently carries a Zacks Rank #4 (Sell).
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Image: Bigstock
Novartis (NVS) to Acquire Subsidiary of IFM Therapeutics
Novartis AG (NVS - Free Report) announced that it will acquire IFM Tre, a subsidiary of IFM Therapeutics LLC.
The acquisition will add a broad portfolio of immunomodulatory medicines, focused on developing anti-inflammatory medicines targeting the NLRP3 (nucleotide-binding domain, leucine-rich repeat-containing receptor pyrin domain containing 3) inflammasome. The acquisition will give Novartis full rights to IFM Tre's portfolio of NLRP3 inhibitors.
The three inhibitors include IFM-2427, a clinical-stage systemic antagonist for an array of chronic inflammatory disorders, including gout, atherosclerosis and nonalcoholic steatohepatitis (NASH); a preclinical-stage gut-directed molecule for the treatment of inflammatory bowel disease; and a preclinical-stage central nervous system (CNS)-penetrant molecule. The acquisition is expected to be complementary to Novartis’ pipeline of anti-inflammatory medicines.
The transaction will close in the second quarter. Per the agreement, Novartis will acquire all of the outstanding capital stock of IFM Tre. In addition, IFM Tre will receive an upfront payment and will be eligible for downstream milestone payments.
Last year was a transformative year for Novartis, as it restructured its business to focus on becoming a core drug-focused company, powered by data and digital technologies.
The company earlier entered into a clinical development agreement with Pfizer (PFE - Free Report) . The agreement includes a clinical trial to evaluate the combination of tropifexor (LJN452) and one or more Pfizer compounds for the treatment of NASH.
NASH is a key target area for most pharma/biotech companies, given the market potential. Key players with promising candidates in the space include Intercept Pharmaceuticals, Inc. , which recently announced positive top-line results from its pivotal phase III REGENERATE study on obeticholic acid (OCA) in patients with liver fibrosis due to NASH. Allergan plc too has an interesting candidate, cenicriviroc in its pipeline for the treatment of NASH.
Shares of the company have gained 13.5% in the past six months compared with the industry's 3.6% growth.
Meanwhile, Novartis is looking to solidify its presence in the gene-therapy space. It acquired U.S.-based clinical-stage gene-therapy company, AveXis, Inc. The company also acquired Endocyte to expand expertise in radiopharmaceuticals. We expect more acquisitions in the coming months, as the company looks to further restructure its business.
Zacks Rank
Novartis currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>