Novartis, Idenix terminate option deal

Idenix Pharmaceuticals Inc. (NASDAQ:IDIX) and Novartis AG (SIX:NOVN; NYSE:NVS) terminated a 2003 deal that gave the pharma an option to in-license any of the biotech's compounds after a proof-of-concept (POC) clinical trial. In 2009, Novartis declined to exercise an option for Idenix's most advanced HCV product, IDX184, a liver targeted prodrug of 2'-methyl guanosine monophosphate that is now in Phase IIb testing. Novartis will no longer have options to license Idenix's products, including IDX719, an HCV NS5A protein inhibitor in Phase I testing, and IDX19368, a next-generation HCV nucleotide inhibitor slated to enter the clinic by quarter end.

Idenix said the termination will provide flexibility to negotiate HCV partnerships -- including a potential deal for an all-oral combination of IDX184, IDX719 and a third party's HCV protease inhibitor -- without having to wait for Novartis to make a decision on exercising its options. Novartis said in a statement that the partners "recognize the benefits of a more flexible arrangement." ...