Novartis to buy Clal Biotech portfolio co Cadent for $770m

Ofer Gonen

Clal Biotechnology has a 13% stake in the US company, which is developing a portfolio of neuroscience and psychiatric drugs candidates.

Pharmaceutical giant Novartis has agreed to acquire Clal Biotechnology Industries Ltd. (TASE: CBI) portfolio company Cadent Therapeutics for up to $770 million. Clal Biotechnology has a 13% stake in Cadent, which is developing a portfolio of neuroscience and psychiatric drug candidates for the treatment of cognitive, mood and movement disorders.

Cadent will receive a $210 million upfront payment from Novartis, and up to a further $560 million in milestone payments.

Clal Biotechnology, which is led by CEO Ofer Gonen, had several US companies, including Cadent Therapeutics, merged into its Israeli portfolio by its controlling shareholder Len Blavatnik, who wanted all his biotech assets to be managed by one entity.

Clal Biotechnology's share price is up 6.35% today, giving the company a market cap of NIS 304 million.

Published by Globes, Israel business news - en.globes.co.il - on December 17, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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