Novartis has the right to acquire Proteon if PRT-201 improves outcomes post-AVF surgery in Phase II trials.

Proteon Therapeutics obtained $38 million in financing to further development of its treatment for patients with end-stage renal disease undergoing surgery for arteriovenous fistula (AVF) creation. The company also reports inking an agreement with Novartis for this drug, PRT-201, the value of which could exceed $550 million.

Novartis has obtained an exclusive option to acquire Proteon if it successfully completes a Phase II study of PRT-201. Proteon recently reported the start of a Phase I/II trial.

Novartis also has the right to a global license under preagreed conditions. The $550 million includes the initial acquisition price plus potential regulatory milestone fees.

The $38 million series B equity financing was led by new investor MPM Capital. Additionally it includes Vectis Healthcare & Life Sciences Fund, which is also a new investor, along with existing investors, TVM Capital, Skyline Ventures, Prism VentureWorks, Intersouth Partners, and several of Proteon’s original angel investors.

PRT-201 is a recombinant human elastase and has reportedly been shown to cause dilation of segments of arteries and veins following topical intraoperative application in animals.

Previous articleBiotech and Generic Industries Lock Horns over Biosimilars
Next articleUCB Taps Proteros for Structure-Based Drug Discovery