Novartis ends NASH collaboration with Pliant
Feb. 24, 2023 12:56 PM ETPliant Therapeutics, Inc. (PLRX), NVSBy: Dulan Lokuwithana, SA News Editor1 Comment
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- The shares of liver-disease drug developer Pliant Therapeutics (NASDAQ:PLRX) fell Friday after announcing that Novartis (NYSE:NVS) has terminated its collaboration and licensing agreement for PLN-1474, a candidate targeted at liver fibrosis associated with NASH.
- Following a 2019 agreement between Pliant (PLRX) and Novartis Institutes for Biomedical Research for PLN-1474, the company received $50M upfront and $29M out of milestone payments worth up to $416M.
- In return, Novartis (NVS) was responsible for the future development, production, and marketing of PLN-1474, a Phase 2-ready small molecule.
- Accordingly, when the partnership ends on Apr. 18, Pliant (PLRX) will regain rights and a related clinical trial application for PLN-1474.
- Novartis (NVS) has cited portfolio reorganization as the reason for its decision.
- Read: Seeking Alpha contributor Avisol Capital Partners reiterated its Hold rating on Pliant (PLRX) in December, citing its lead candidate PLN-74809 for idiopathic pulmonary fibrosis.