teaser
Swiss drugmaking giant Novartis has gained the rights to a heart failure drug after it took over US group Cothera for $120 million (£75 million).
The company, which already makes Diovan, used for treating high blood pressure, will take over the rights to Relaxin.
The drug is currently in the final stages of clinical tests, according to Novartis.
It is a further sign that drugmakers are keen to diversify in order to increase revenue.
Some firms have also started to move into different business areas such as consumer health and generics in order to further boost their profit margins.
Tero Weckroth, analyst at Kepler Capital Markets said: “The deal is not excessively costly; for a $120 million acquisition followed by $500 million (£312 million) potential milestones, the company will gain a phase III product with published phase II data.”
Copyright Press Association 2009
Novartis
