Novartis to Acquire Gyroscope Therapeutics for Up to $1.5 Billion

By Cristina Roca

Novartis AG said Wednesday that it has entered into an agreement to buy U.K.-based ocular gene therapy company Gyroscope Therapeutics.

The Swiss pharmaceutical major will pay $800 million upfront and agreed to potential additional milestone payments of up to $700 million.

The deal will add GT005, a one-time gene therapy for geographic atrophy, to Novartis's pipeline. Geographic atrophy is a leading cause of blindness in older people, and there are no approved treatments for it, the company said. The treatment is currently in Phase 2 trials.

"Gyroscope also has several additional assets in its pipeline in early discovery for retinal diseases," Novartis said.

Novartis recently completed a deal to sell its stake in Roche Holding AG back to its cross-town rival for $20.7 billion. It said last week that it would buy back up to $15 billion of its shares, but still have firepower to engage in mergers and acquisitions.

Write to Cristina Roca at [e-mail]

(END) Dow Jones Newswires

12-22-21 0235ET