Novartis is spinning off three mid stage clinical assets to Mereo for further development in exchange for equity
Novartis will have a stake in the success of the development of these compounds, including receiving payments on milestones and royalties on future commercial sales

As a new UK based biotech company, Mereo's mission is to acquire and rapidly develop innovative medicines
Basel, July 29, 2015 - Novartis announced today a swap of clinical assets for equity with Mereo BioPharma Group Ltd. The deal involves compounds in areas of unmet medical need including BPS-804, to improve bone density in brittle bone syndrome, an orphan disease; BCT-197 for acute exacerbations in COPD, and BGS-649 for obese men with hypogonadotrophic hypogonadism to normalize testosterone levels.

Under the terms of the agreement, Novartis will have an equity stake in Mereo and will share in the success of the development of these compounds, including a share on milestones and royalties on future commercial sales.

"We are pleased that through this deal with Mereo we have found a way to work together to bring these valued innovations to patients," said David Epstein, Head of Novartis Pharmaceuticals.

Mereo is a recently formed specialty biopharmaceutical company based in the UK who focuses on the acquisition and development of innovative medicines, particularly in rare and specialist disease areas, through the acquisition of validated, mid stage development programs.

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About Novartis
Novartis provides innovative healthcare solutions that address the evolving needs of patients and societies. Headquartered in Basel, Switzerland, Novartis offers a diversified portfolio to best meet these needs: innovative medicines, eye care and cost-saving generic pharmaceuticals. Novartis is the only global company with leading positions in these areas. In 2014, the Group achieved net sales of USD 58.0 billion, while R&D throughout the Group amounted to approximately USD 9.9 billion (USD 9.6 billion excluding impairment and amortization charges). Novartis Group companies employ approximately 120,000 full-time-equivalent associates. Novartis products are available in more than 180 countries around the world. For more information, please visit http://www.novartis.com.

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