On November 2, 2021, Dunad Therapeutics, a biopharmaceutical company focusing on the development of next-generation targeted protein degradation therapies, announced that it has entered a strategic collaboration and license agreement with Novartis to generate orally bioavailable covalent and protein degrading small molecule drugs. Wilson Sonsini Goodrich & Rosati advised Dunad on patent matters related to the transaction.

Under the terms of the agreement, Dunad will apply its tunable and highly selective platform to generate novel covalent and targeted protein degrading small molecule drugs focusing on up to four drug targets agreed with Novartis. Dunad will also be responsible for program execution up to lead optimization. Novartis will contribute target and ligand knowledge, as well as access to unique assays and models, and will fully fund the research collaboration. Novartis has an exclusive option to develop and commercialize products resulting from the research programs directed against up to four drug targets. Upon exercise of this option, Novartis will assume responsibility for future development, manufacturing, and global commercialization of the small molecule therapeutic products generated against the agreed targets.

Dunad will receive $24 million in an upfront payment and equity investment, as well as significant research funding. Dunad will also be eligible to receive up to $1.3 billion in discovery, regulatory, and sales-based milestones, in addition to royalty payments.

The Wilson Sonsini team that advised Dunad on the collaboration included Lou Lieto, Gregory Mitchell, Wei Li, and Dylan Kahl.

For more information, please see Dunad’s press release.