Novartis has acquired Kate Therapeutics, a San-Diego based preclinical stage biotech company which develops adeno associated virus (AAV)-based gene therapies.

The acquisition aims to further the strategic priority of Novartis in the areas of gene therapy and neuroscience, and includes the enabling of technology platforms and candidates for the therapies of DMD, FSHD and DM1*, which are currently in the preclinical stages. Kate Therapeutics’ technology platforms combine both capsid and cargo technologies which target the treatment of affected tissue whilst mitigating undesirable side-effects to non-target tissues such as the liver. An initial cash payment plus following potential milestone payments to Kate Therapeutics will total $1.1 billion.