Cadent Therapeutics and Novartis have signed a definitive agreement under which Novartis will acquire all of the outstanding capital stock of Cadent Therapeutics. Upon the closing of the agreement, Cadent will receive a $210 million upfront payment and will be eligible for up to $560 million in milestone payments, for a total potential consideration of $770 million. Cadent Therapeutics launched in 2017 through the merger of Luc Therapeutics and Ataxion Therapeutics, has a focus on small molecules targeting neuronal ion channels.
The acquisition will give Novartis full rights to Cadent’s neuroscience portfolio, including its NMDAr program, which consists of two clinical programs: CAD-9303, a NMDAr positive allosteric modulator, and MIJ-821, a NMDAr negative allosteric modulator, which was licensed to Novartis in 2015. Additionally, Novartis will gain full rights to CAD-1883, a clinical stage SK channel positive allosteric modulator in development for movement disorders.
The transaction has been approved by the board of directors and stockholders of Cadent Therapeutics. Cadent and Novartis anticipate the transaction will close during the first quarter of 2021. Closing of the transaction is subject to customary closing conditions, including antitrust review pursuant to the Hart-Scott-Rodino premerger notification program.