Bad test data!

CompilationFan Dongdong

This week, Novartis announced the termination of a partnership deal with Mesoblast to develop the COVID-19 drug remestemcel-L, citing poor trial data, sending Mesoblast shares down more than 15% on the bad news

Last November, Novartis signed an exclusive worldwide license and collaboration agreement with Australia-based Mesoblast to develop, commercialize and manufacture remestemcel-L for acute respiratory distress syndrome (ARDS), including those related to COVID-19 , at the time Novartis described the partnership with Mesoblast as an "important addition to the pipeline

Under the terms of the agreement, Novartis will make an upfront payment of $50 million, including a $25 million equity stake, and Novartis will also provide full funding for global clinical development in all-cause ARDS and potentially other respiratory indications

A Novartis spokesperson said, "After evaluating additional trial data for remestemcel-L, the totality of evidence from the Phase 3 trial of this therapy is insufficient to warrant continued collaboration," adding that "no security issues"

However, in December, Mesoblast shortened the phase 3 trial after a data safety monitoring committee concluded that the therapy was "unlikely" to meet its primary endpoint (a 43% reduction in 30-day mortality)

Despite many setbacks in both trials and collaborations, Mesoblast said it remains determined to bring the cell therapy remestemcel-L to market for patients with acute respiratory distress syndrome (ARDS) caused by COVID-19

With the termination of this agreement, there will also be a potential loss of earnings for Mesoblast

Mesoblast noted that the company will now remain highly focused on executing on its short-term goal of bringing remestemcel-L to market for the treatment of patients with acute respiratory distress syndrome (ARDS) caused by COVID19

Reference source: Novartis pulls out of Mesoblast deal