Novartis has inked a deal potentially worth more than $1 billion with Flagship-founded Generate:Biomedicines to develop protein therapeutics across multiple indications.
The companies did not disclose specifics about potential disease areas, referring only to the pact as a “multi-target collaboration” in a Sept. 24 release.
Under the terms of the agreement, Novartis is doling out $65 million in cash, an upfront payment that includes a $15 million purchase of equity in Generate. The Swiss Big Pharma is also offering the biotech more than $1 billion in milestone payments, plus tiered royalties up to low double-digit percentages.
The partnership revolves around Generate’s generative AI platform, which integrates machine learning with high-throughput experimental validation with the aim of ushering in a new era of programmable biology.
Paired with Novartis’ capabilities in target biology and clinical development, the partners hope to create new therapeutics at an accelerated pace, according to the release.
“Partnering with a world-leading drug discovery and development organization like Novartis allows us to broaden the use of our cutting-edge generative biology platform to tackle even more areas of unmet medical need,” Generate CEO Mike Nally said in the release. “We look forward to working closely with the team at Novartis to continue to demonstrate the transformative potential of programming biology to create better medicines for patients, faster.”
Founded by Flagship in 2018, Generate is no stranger to Big Pharma tie-ups. In 2022, Amgen inked an agreement worth up to $1.9 billion biobucks to develop five initial programs with Generate, leaving room for the potential to nominate up to five more programs later. Amgen has already taken up its option in part, with the pair currently working on six undisclosed programs together.
Generate is known for its eye-popping fundraises, securing $273 million in a series C last year and a $370 million series B back in 2021.
The biotech currently has two candidates in the clinic: GB-0669, a monoclonal antibody (mAb) targeting a region of the COVID-19 virus’ spike protein, and GB-0895, an anti-TSLP mAb for patients with severe asthma.
At the beginning of this year, Generate said it planned on advancing an additional four to five assets into the clinic over the next two years. The company’s pipeline includes a preclinical bispecific targeting non-small cell lung cancer and being developed in collaboration with the University of Texas MD Anderson Cancer Center, as well as an armored CAR-T for solid tumors in partnership with the Roswell Park Comprehensive Cancer Center.
The biotech is also working on a preclinical antibody drug conjugate plus a protein binder designed to serve as an ADC toxin neutralizer.