Novartis said Thursday it purchased gene therapy startup Kate Therapeutics for up to $1.1 billion in upfront payments and milestones.
It’s a rare buyout for a field that has quieted over the last couple years, amid a wider biotech downturn and questions about both the effectiveness and profitability of these one-time treatments.
With the deal, Novartis will acquire a pipeline of preclinical gene therapies for three different genetic neuromuscular diseases, along with the underlying technology used to create them. Most notably, it joins a high-stakes, fast-moving race to develop a better gene therapy for Duchenne muscular dystrophy than a Sarepta treatment that has divided both regulators and scientists.
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