PeptiDream Announces Expansion of Peptide Discovery Collaboration with Novartis

PeptiDream Inc., a public Kanagawa, Japan-based biopharmaceutical company (President and CEO: Patrick C. Reid, hereinafter "PeptiDream") (Tokyo: 4587) today announced an expansion of its peptide discovery collaboration with Swiss-based Novartis Pharma AG ("hereinafter Novartis") (NYSE: NVS). Under the multi-program agreement, PeptiDream will use its proprietary Peptide Discovery Platform System ("PDPS^®") technology to identify and optimize novel macrocyclic peptides against targets selected by Novartis, for potential conjugation to radionuclides (to which Novartis refers to as "radioligand therapies" or "RLTs") or other applications for both therapeutic and diagnostic purposes.

This new agreement expands upon the peptide-drug conjugate (PDC) collaboration announced in 2019, and further highlights the two companies' long-standing discovery efforts, originally initiated in 2010, and extended multiple times, including Novartis's licensing of PeptiDream's PDPS technology in 2015.

Under the terms of the agreement, PeptiDream will receive an upfront payment of $180 million USD (28.03 billion JPY^*1) from Novartis. In addition, PeptiDream is eligible to receive up to $2.71 billion USD (422.03 billion JPY^*1) in payments based on the achievement of specified development, regulatory and commercial milestones, plus tiered royalties on net sales of any such products arising from the collaboration.

"We are delighted to further expand our long-standing macrocyclic peptide discovery collaboration with Novartis, adding additional peptide RLT and other programs to our strong partnership," said Patrick C. Reid, Ph.D., CEO of PeptiDream. "As macrocyclic peptides continue to be the ideal vectors for the targeted deliver of a variety of therapeutic payloads, PeptiDream continues to build an extensive pipeline of partnered as well as internal peptide-conjugate programs."

"We are enthusiastic about the progress we've made with PeptiDream through our long-standing research collaboration and look forward to continuing our work together as we strive to create impactful new therapies for patients," said Shiva Malek, Global Head of Oncology Research at Novartis. "Our expanded partnership reflects our shared commitment to pioneering science that broadens the scope of transformative therapeutic approaches such as RLT."

Closing of the transaction is subject to the parties' receipt of any necessary consents or approvals, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

*1: 1 USD= 155.73JPY

About PeptiDream Inc.

PeptiDream Inc. (Tokyo Stock Exchange Prime Market 4587) is leading the translation of macrocyclic peptides into a whole new class of innovative medicines to address unmet medical needs and improve the quality of life of patients worldwide. Founded in 2006, PeptiDream employs its proprietary Peptide Discovery Platform System (PDPS) technology, a state-of-the-art highly versatile discovery platform which enables the production of highly diverse (trillions) non-standard peptide libraries with high efficiency, for the identification of highly potent and selective macrocyclic peptide candidates, which then can be developed into peptide-based, small molecule-based, peptide-drug conjugate (PDC), and multi-functional peptide conjugates (MPC)-based therapeutics and diagnostics. PeptiDream has an extensive global network of discovery and development partners driving the development and commercialization of a broad and diversified pipeline of investigational therapeutics. PeptiDream also markets and sells a number of radiopharmaceutical and radiodiagnostic products in Japan, through its wholly owned subsidiary, PDRadiopharma. PeptiDream is headquartered in Kawasaki, Japan. For more information about our company, science and pipeline, please visit www.peptidream.com.