Homburger advised Molecular Partners in connection with a collaboration with Novartis to develop DARPin® therapies designed for potential use against COVID-19

On October 28, 2020, Molecular Partners AG (SIX: MOLN) (Molecular Partners), a clinical-stage biotech company that is developing a new class of custom-built protein drugs known as DARPin® therapeutics, and Novartis AG (SIX: NOVN) (Novartis) announced that they had entered into an option and license agreement providing for a collaboration to develop, manufacture and commercialize Molecular Partners’ anti-COVID-19 DARPin® program. Under the agreement, Novartis is granted an option to in-license certain drug candidates and agrees to effect an upfront cash payment of CHF 20 m.

As part of the collaboration, Novartis also agreed to acquire shares in Molecular Partners accounting for approximately 6% of all shares outstanding at a price of CHF 23 per share, or CHF 40 m in the aggregate. If Novartis elects to exercise the option in the future, Molecular Partners will receive a payment of CHF 150 m and be entitled to a 22% royalty on sales.

Homburger AG acted as legal counsel to Molecular Partners on this transaction. The Homburger team was led by partner Dieter Gericke (Corporate / M&A, Capital Markets) and included associate Lorenzo Togni and junior associate Daniel Madani (each Corporate / M&A, Capital Markets). Luca Dal Molin (partner, IP / IT) advised on intellectual property and licensing; the tax aspects were covered by Stefan Oesterhelt (partner, Tax).