Conatus spikes after hours on Novartis NASH deal
Conatus Pharmaceuticals Inc. (NASDAQ:CNAT) gained $2.63 (134%) to $4.59 in early after-hours trading after it announced a co-development deal with Novartis AG (NYSE:NVS; SIX:NOVN) for its nonalcoholic steatohepatitis candidate emricasan (IDN-6556, PF-03491390, PF-3491390). Conatus is to receive $50 million up front, and is eligible for $650 million in milestones, plus tiered royalties.
Novartis will have an exclusive option to develop the pan-caspase protease inhibitor in all indications, alone or in combination with other Novartis candidates. Conatus will receive $7 million if Novartis exercises the option, which is tied to Conatus' planned 2H17 start of the Phase IIb ENCORE-LF trial to treat decompensated NASH. Novartis would also pay half of Phase IIb development costs, which include the ongoing ENCORE-PH, ENCORE-NF and POLT-HCV-SVR studies, and would be responsible for subsequent development, including Phase III and combination studies...