The acquisition gives the drugmaker full rights to technology that crosses the blood-brain barrier.
On 19 September, Novartis agreed to acquire full rights to Sironax's proprietary brain delivery platform for neurological disease treatments. The transaction gives Novartis full control of technology engineered to transport therapeutics across the blood-brain barrier.
The deal expands the research toolkit of Novartis in central nervous system disorders, an area where treatment options remain limited. The company carries a market capitalisation of 218.8 billion Swiss francs and is competing against rivals such as Roche and Biogen for neurological treatments.
Novartis has focused its pipeline on advanced therapies, including biologics as well as gene and cell therapies. The platform acquisition connects directly with recent pipeline developments such as regulatory progress for Cosentyx and Phase 3 trial data for remibrutinib.
Analysts have pointed out that Novartis already carries high debt levels. Adding capital-intensive programs alongside share buybacks could stretch its balance sheet, especially following recent clinical trial setbacks with pelacarsen and del-desiran.
Newsletter
Markets in your inbox, weekly
LATAM-focused analysis, investing ideas, and the week in finance.
Keep reading
