Novartis to pay up to $1.6B for immunology firm subsidiary

Novartis has agreed to acquire a subsidiary of IFM Therapeutics for a potential total of nearly $1.6 billion, including $310 million up front, and up to $1.27 billion in milestone payments, according to Reuters.

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Under the deal, IFM will sell off IFM Tre and its assets, which focus on immune system drugs. IFM Tre has one drug, IFM-2427, in an early phase 1 trial and two other less-developed assets.

In buying three potential drugs, Novartis hopes to expand its pipeline of treatments for  inflammatory disorders.

The deal is scheduled to close in the second quarter of this year.

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