Cancer immune therapy from Admune Therapeutics acquired by Novartis

Novartis has expanded its immuno-oncology pipeline by acquiring Admune Therapeutics and licensing agreements with smaller drug developers Xoma and Palobiofarma, Reuters reports.

The Spanish biotech company, Palobiofarma announced in a seperate statement that the company had entered into a $15 million licensing agreement with the Swiss pharmaceutical company.

Novartis announced that this has led to the addition of Admune's IL-15 agonist programme, Palobiofarma's adenosine receptor and Xoma's TGF-beta inhibition programs to the company's immuno-oncology portfolio.

In terms of revenue, Novartis is the biggest drugmaker globally, and the company is currently investing in cancer immunotherapy in the hopes that the sector would then generate billions in annual sales. Roche, who is the biggest cancer-drug maker, is also pursuing therapies that strengthen the immune system to deter tumors.

Market Watch reports that according to Mark Fishman, president of the Novartis Institutes for BioMedical Research, "The first wave of immuno-oncology therapies has demonstrated the impact this approach can have in treating certain types of tumors."

"To realize its full potential requires exploration of the complex system of biological pathways in the tumor microenvironment with agents that can stimulate the immune system to attack a wider variety of tumors," he said.

According to Market Watch, Novartis' acquisition of Admune puts an IL-15 agonist program, which is currently in phase 1 clinical trials for metastatic cancer, in the hands of the company. Additionally, the company's licensing agreement with Palobiofarma hands over the development and commercialization rights of to PBF-509, an adenosine receptor antagonist currently in phase I clinical trials for non-small cell lung cancer to Novartis. The Xoma agreement also gives the company development and commercialization rights to Xoma's TGF-beta antibody programs.

Earlier this month, San Francisco Business Times reported that Xoma signed a potential licensing deal with Novartis for an experimental cancer immunotherapy treatment. The deal amounted to $530 million and gives royalties to Xoma if and when the drugs succeed in its clinical trials and drug-approval processes.

According to Xoma CEO John Varian, "Xoma and Novarties have worked closely together for several years to develop new product candidates. When they expressed interest in our (immunotherapy) program, we knew Novartis was the best company to bring this exciting potential therapy to the patients whom it may help."

Novartis' portfolio boasts of over 50 marketed products, and according to Pulse Headlines, the company had an annual revenue of $57.9 billion and a net income of $12.533 billion in 2013. These numbers are expected to rise following the acquisition and licensing deals, especially if the cancer therapies succeed in its clinical trials.