Novartis decides to hand back rights to AVEO's experimental GDF15 inhibitor AV-380

AVEO Pharmaceuticals disclosed in a filing with the US Securities and Exchange Commission that Novartis plans to terminate an agreement for the development of the former's GDF15 inhibitor AV-380. The Swiss drugmaker said the decision, which will see the deal end on August 28, is due to "changes in management and strategic priorities," and not related to previously disclosed development delays.

In 2015, Novartis gained global rights to AV-380 in a deal valued at as much as $326 million, including an upfront payment of $15 million to AVEO. The drug was under development as a potential treatment for cachexia secondary to multiple disease states, including cancer, chronic kidney disease, congestive heart failure and chronic obstructive pulmonary disease.

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Prior to Novartis deciding to exit the agreement, AVEO noted that separately it provided the Swiss company with a dispute notification regarding their diligence obligations with respect to AV-380. According to AVEO, the next step in the dispute will be discussions between the parties, although if a resolution is not reached, arbitration could begin.

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