Benzinga | Nov 2, 2021 06:33PM EDT

Novartis Inks $1.3B Protein Degradation Deal With UK's Dunad

* The U.K.-based Dunad Therapeutics has entered a strategic collaboration and license agreement with Novartis AG (NYSE:NVS) to generate orally bioavailable covalent and protein degrading small molecule drugs.

* Under the new deal, Dunad is tasked with deploying its platform to generate new candidates against up to four targets and steer those programs up to lead optimization.

* Novartis will contribute target and ligand knowledge and assays & models and will fully fund the research collaboration.

* Novartis has an exclusive option to develop and commercialize products against up to four drug targets.

* Under the agreement terms, Dunad will receive $24 million in an upfront payment, equity investment, and research funding.

* Dunad will also be eligible for milestone payments that could aggregate up to $1.3 billion and royalties.

* Price Action: NVS shares closed down 0.36% at $83.75 on Tuesday.