Novartis buys US drug firm Protez for around $400 million

04 June 2008

Mumbai: Swiss drug major Novartis AG has bought US-based vaccine maker Protez Pharmaceuticals in a deal worth up to $400 million, gaining rights to an antibiotic which could be used to fight superbugs such as MRSA.

"The acquisition of Protez Pharmaceuticals provides rights to PZ-601 and further strengthens specialty medicines development portfolio in hospital infections," Novartis said in a statement. Novartis will get rights to PZ-601 in the US and Europe.

PZ-601 is a novel broad-spectrum antibiotic in Phase II development against potentially deadly drug-resistant infections, including MRSA and ESBL strains, Novartis said.

Novartis will initially pay $100 million for privately held Protez, with a potential for up to $300 million in additional payments depending on the success of PZ-601, the company said.

PZ-601 is a new antibiotic in a class of agents known as carbapenems. Medicines in this class are useful in treating life-threatening infections caused by Gram-negative and Gram-positive bacteria. PZ-601, which is administered by injection, has been specifically shown to have a broad spectrum of activity that could offer better coverage over existing injectable antibiotics, especially against multidrug-resistant bacteria including MRSA (methicillin resistant Staphylococcus aureus) strains that are becoming an increasing public health challenge.

''Novartis has a long-standing commitment of bringing innovative medicines to severely ill patients and fighting infections that represent significant public health threats," said Joe Jimenez, CEO of Novartis Pharma AG. "The addition of Protez and its pipeline, including PZ-601, to our existing initiatives will further strengthen our position in the specialty field of hospital infections while helping to address the public health challenges of increasing bacterial resistance and high mortality rates."