Novartis has cancelled an agreement to develop, produce and market Mesoblast’s mesenchymal stromal cell (MSC) product remestemcel-L.
An experimental treatment, Remestemcel-L comprises culture-expanded MSCs obtained from an unrelated donor’s bone marrow.
Remestemcel-L is claimed to possess immunomodulatory properties to work against cytokine storms linked to several inflammatory conditions.
Under the deal signed in November last year, Novartis agreed to pay Mesoblast $50m as upfront payment, which also comprised $25m in equity.
On commencing a Phase III trial in all-cause acute respiratory distress syndrome (ARDS), Novartis had earlier agreed to provide complete funding for the international clinical development of the therapy for this indication as well as for various other respiratory ailments.
The deal between the companies is now terminated before closing.
Mesoblast noted that the company will work on bringing the therapy to market for individuals with Covid-19-associated ARDS.
Despite missing the primary goal in the COVID ARDS trial, the company considers the reported drop in mortality on treatment with remestemcel-L in subjects aged below 65 years supports seeking an emergency use authorization (EUA).
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