PTC Therapeutics Partners with Novartis in $2.9 Billion Licensing Deal

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PTC Therapeutics (NASDAQ: PTCT) has entered a major licensing agreement with Novartis, valued at up to $2.9 billion, to advance a promising treatment for Huntington’s disease. This partnership is a key development for PTC as it expands its portfolio in the treatment of rare and neurological conditions, with Huntington’s disease being an area with limited treatment options.

The deal includes an upfront payment of $1.0 billion at closing, with additional payments tied to milestones in development, regulatory approvals, and sales, totaling up to $1.9 billion. Additionally, PTC will receive royalties on sales outside the U.S. and share profits from U.S. sales. Novartis will take over global responsibilities for the treatment’s development, manufacturing, and commercialization after the completion of the ongoing PIVOT-HD study.

In addition to the licensing agreement, PTC Therapeutics announced the sale of its Rare Pediatric Disease Priority Review Voucher (PRV) for $150 million. The voucher was granted following the FDA approval of KEBILIDI™, a treatment for AADC deficiency. This further supports the company’s financial position as it continues to advance treatments for rare diseases.

Looking ahead, the Novartis partnership provides PTC with valuable resources to accelerate the development of its Huntington’s treatment. The deal also enhances PTC’s strategic positioning in the neurological space, with the potential to drive growth and attract further opportunities in the future.