Novartis Expands Optogenetics Portfolio By Acquiring Swiss Startup for an Undisclosed Amount

For an undisclosed price, Novartis has bought Arctos Medical, a budding Swiss startup that develops optogenetic therapies for treating blindness. The acquisition comes about 11 months since the pharma giant snagged a similar company in the optogenetic space, Vedere Bio, in a deal worth up to $280 million.

Arctos, Switzerland’s first gene therapy company, launched with seed funding from Novartis Venture Fund and NanoDimension. The University of Bern spinout has developed a technology that potentially addresses many forms of inherited retinal dystrophies (IRDs) and other diseases that involve photoreceptor loss, such as age-related macular degeneration (AMD).

IRDs are a spectrum of ocular diseases caused by pathogenic mutations in over 100 genes. In recent times, gene therapy has emerged as a possible cure for IRDs. However, most aim to correct a specific gene, thereby benefitting only a small subset of patients.

On the other hand, Arctos creates “replacement photoreceptors” with an optogene delivered to and expressed in
specific retinal cells using AAV gene therapy. When activated by the optogene, the targeted cells engage intraretinal circuits to maximize the quality of the visual code sent to the brain. Therefore, by working regardless of the causative mutation, this technology could potentially address a larger population of patients than existing treatments.

“We are thrilled that Novartis recognizes the potential value and differentiated profile of Arctos’ unique optogenetics technology,” said Kostas Kaloulis, CEO of Arctos and venture partner at +ND Capital. “As a global ophthalmology leader, Novartis is ideally positioned to rapidly advance our program into the clinic. We look forward to progressing the technology to deliver transformative therapies for underserved patients.”

Market for Eye Diseases

IRDs impact more than 2 million people globally, with AMD alone estimated to affect around 170 million people. Currently, Roche and Novartis’ Lucentis, Regeneron’s Eylea, and Novartis’ Beovu are all available for managing wet AMD. Still, they are not curative and require multiple dosing and monthly monitoring of patients. 

“Optogenetics is emerging as a promising therapeutic approach that might restore sight to patients who are legally blind,” said Jay Bradner, President of the Novartis Institutes for BioMedical Research. “The Arctos technology builds on our conviction that optogenetic gene therapies may meaningfully help patients battling devastating eye diseases.”

Novartis’ three major eye products include Xiidra, Beovu, and Lucentis. In the second quarter of 2021, it recorded $1.114 billion in ophthalmology product sales only. However, that might take a hit soon with Byooviz becoming the first FDA-approved biosimilar of Lucentis just days ago. With two new acquisitions in the optogenetic therapy space, Novartis is now actively diversifying its ophthalmology program.

“We’ve watched this technology develop and mature into a therapeutic program that complements our existing portfolio and gives us new optogenetics technology to wield in our efforts to bring desperately needed therapeutic options to patients for these blinding diseases,” said Cynthia Grosskreutz, Global Head of Ophthalmology at the Novartis Institutes for BioMedical Research.

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Author

Rajaneesh K. Gopinath