Novartis to buy US-based Cadent Therapeutics for up to $770m

Novartis has agreed to buy Massachusetts-based neuroscience company Cadent Therapeutics for up to $770m.

The Swiss pharmaceutical company said on Thursday that the acquisition adds two new clinical stage programs to the Novartis neuroscience portfolio, one for schizophrenia and the other for movement disorders.

Under the terms of the deal, Cadent will receive a $210m upfront payment and will be eligible for up to $560m in milestone payments.

Jay Bradner, president of the Novartis Institutes for BioMedical Research (NIBR), said: "We are committed to changing the lives of patients suffering from serious neuropsychiatric disorders for which there are limited treatment options.

"The Cadent acquisition follows a longstanding collaboration and shared ambition to bring forward novel neuropsychiatric medicines targeted at the root cause of disease."

The transaction is expected to complete in the first quarter of next year.