SHERIDAN, WYOMING – July 25, 2025 – Novartis AG has entered a strategic drug discovery alliance with Matchpoint Therapeutics, securing global rights to novel oral inhibitors aimed at treating multiple inflammatory conditions. The deal underscores Novartis' commitment to expanding its pipeline through innovation-driven partnerships and bolsters its focus on next-generation therapeutic platforms.
Strategic investment in covalent chemistry
The agreement grants Novartis full development and commercialization rights to molecules emerging from Matchpoint's proprietary discovery platform, known as the Advanced Covalent Exploration (ACE) platform. This cutting-edge technology identifies previously undruggable cryptic binding sites on disease-relevant proteins using covalent chemistry — a method that creates permanent bonds between drug and target.
Matchpoint emphasized the advantages of this approach: “The durable target engagement achieved with covalent chemistry imparts improved potency, greater selectivity, and lower systemic exposure than otherwise possible.”
The platform is expected to generate oral inhibitors against a transcription factor associated with a range of inflammatory diseases. While the exact indications have not been disclosed, the technology holds promise for diseases that have long resisted conventional drug modalities.
Deal structure and commercial upside
Under the terms of the agreement, Matchpoint will receive $60 million in upfront payments and research funding. Novartis may pay up to $1 billion in additional development and commercial milestones, along with tiered royalties on product sales. This structure aligns with the biotech industry's increasing preference for milestone-based risk sharing, ensuring both parties are incentivized across the development lifecycle.
Key highlights of the agreement include:
- Global rights for Novartis on all drug candidates from the partnership
- $60 million upfront to Matchpoint for early-stage research
- Up to $1 billion in milestone payments
- Tiered royalties on commercial sales
Matchpoint’s emerging role in biotech innovation
Founded in late 2022 with $100 million in initial financing, Matchpoint is backed by leading investors including Sanofi Ventures, Vertex Ventures HC, and Atlas Venture. Although it has not disclosed a formal pipeline, Matchpoint announced intentions at launch to explore a broad disease space, including cancer.
The company’s platform-based model fits squarely into the growing biotech trend of modular discovery systems that can be licensed across therapeutic areas. This model is particularly attractive to large pharma companies looking to de-risk their early R&D spend while accessing innovative technologies.
A clear signal of Novartis’ long-term growth strategy
The Matchpoint deal follows a series of strategic moves by Novartis to build out its research capabilities through smaller, targeted transactions. In recent months, Novartis acquired Regulus Therapeutics for $800 million upfront to gain access to its miRNA assets, and partnered with ProFound Therapeutics for $25 million upfront and $750 million in milestones to discover cardiovascular drugs.
At the company’s 2024 year-end report, CEO Vas Narasimhan outlined this bolt-on acquisition strategy: “look for primarily bolt-on acquisitions that we think will bolster our growth in the 2030 and beyond period.”
This latest transaction with Matchpoint is a clear extension of that vision — pairing platform innovation with a scalable partnership model to prepare Novartis for long-term market leadership in immunology and inflammation.
Learn more at www.novartis.com