Novartis and Molecular Partners Finalize $230 Million Pact for New Class of COVID-19 Antivirals

After seeing positive topline data from a Phase 2a trial,  Novartis has decided to in-license ensovibep, a potential treatment for Covid-19, from fellow Swiss company Molecular Partners in a deal worth over $230 million.

The two companies originally entered into a collaboration over two candidates, MP0420 (later known as ensovibep) and MP0423, in October 2020. Under the initial agreement, Molecular Partners received an upfront payment of CHF 60 million (~$65 million) from Novartis. 

While MP0423 was not mentioned in the latest update of the deal, Novartis’ decision to in-license envisobep triggered a milestone payment of CHF 150 million (~$164 million) to Molecular Partners. 

Molecular Partners may also receive a 22% royalties on sales in commercial countries, excluding lower income countries. 

Related Article: Novartis Inks Deal with Molecular Partners for a Novel Way to Take Down COVID-19

Ensovibep Binds to Multiple Areas on the Virus’ Spike

Ensovibep belongs to a new class of protein drugs called Designed Ankyrin Repeat Proteins, or DARPin. Unlike antibody-based drugs, DARPins are much smaller in size.  

Ensovibep is a trispecific DARPin designed to bind to three parts of the receptor-binding domain on the spike protein of SARS-CoV-2, the virus that causes Covid-19. The nultispecific binding may make the molecule more effective against mutations of the spike compared to single-target antibodies. 

In vitro studies showed that the drug exhibited potent inhibitory activity against multiple variants of Covid-19, including the Omicron variant. 

Related Article: GeneOnline’s Pick: Notable Novel FDA Approved Drugs in 2021

Troubled Results in Clinical Trials

Despite its promised advantages, envisobep failed to pass the efficacy requirement in the National Institutes of Health-sponsored ACTIV-3 trial, a large-scale trial for Covid-19 treatments for hospitalized cases. News of the flop had sent Molecular Partners’ stock down 37% in Switzerland last November.

Since then, Molecular Partners and Novartis have been investigating the DARPin as a treatment for non-hospitalized Covid-19. 

The drug redeemed some of its worth after a topline readout of its Phase 2a EMPATHY trial in 407 non-hospitalized adult patients with Covid-19 showed that the drug met the primary endpoint of significantly decreasing the viral load over eight days. An overall 78% decline in the risk of hospitalization or death was also observed in the ensovibep group. 

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Joy Lin

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