Novartis to pay up to $485M for rights to US firm’s antibiotic for drug-resistant bacteria

Novartis buys rights to next-generation antibiotic

BASEL, Switzerland — Novartis AG said Thursday it has bought worldwide rights to a new antibiotic drug developed by U.S. company Paratek Pharmaceuticals to treat drug-resistant bacteria such as MRSA.

MRSA, or methicillin-resistant Staphylococcus aureus, is a hard-to-treat bug once rarely seen outside of hospitals that increasingly is spreading in ordinary community settings such as schools, locker rooms and gyms.

Boston-based Paratek said it will receive up to $485 million in upfront and milestone payments as the drug, PTK 0796, advances in its development.

Paratek also will be eligible for royalties once Novartis begins selling the drug, meaning the deal could be worth more than $500 million in the long-run, said Beverly A. Armstrong, Paratek vice president and general counsel.

It is the biggest deal the 50-person biotech firm has done to date, she said.

Novartis and Paratek will share the costs of further developing PTK 0796, which is currently undergoing Phase III studies.

Novartis said it plans to develop the drug for oral and intravenous use to treat infections caused by bacteria that are resistant to existing antibiotics, such as MRSA and multi-drug resistant Streptococcus pneumoniae, or MDRSP.