Novartis and Relation Therapeutics form AI-driven, multi-program atopic disease collaboration

Novartis has entered a multi-program strategic collaboration with Relation Therapeutics to discover and advance new therapeutics for atopic diseases driven by immune dysregulation.1235

The alliance combines Relation’s AI-powered, patient-derived “Lab-in-the-Loop” discovery platform and human multi-omic data generation with Novartis’s expertise in immuno-dermatology and drug development.123

The collaboration focuses on atopic diseases, including conditions such as asthma, allergies, eczema, and allergic rhinitis, which are linked to IgE-mediated overreaction to allergens.12

Relation will use its platform to identify, validate, and prioritize first-in-class targets by defining molecular pathways in diseased vs. healthy human tissue, aiming to reduce failure rates in drug development.123

As part of the deal, Relation is set to receive $55 million in total near-term funding, including an upfront payment, equity investment, and R&D support.145

Relation is eligible for up to approximately $1.7 billion in preclinical, development, regulatory, and commercial milestone payments, plus tiered royalties on net sales of any resulting products.145

Relation will lead observational studies to generate functional cell atlases directly from patient tissue, capturing disease biology in humans with high resolution to inform target discovery.13

Novartis positions this collaboration as part of its strategy to leverage cutting-edge AI to accelerate target identification and drug discovery for patients with atopic diseases.15

Alongside the Novartis agreement, Relation announced a $26 million financing round led by DCVC, NVentures (NVIDIA), and Magnetic Ventures, reflecting investor confidence in its AI-enabled approach.14

Sources:

1. https://www.pharmexec.com/view/relation-therapeutics-forms-1-billion-multi-program-collaboration-novartis-advancing-therapeutics-for-atopic-diseases

2. https://pharmaphorum.com/news/lab-loop-specialist-relation-attracts-novartis-alliance

3. https://www.bioworld.com/articles/726903-relation-and-novartis-collaborate-in-atopic-diseases

4. https://www.dcvc.com/news-insights/relation-unveils-atopic-diseases-agreement-with-novartis-55-million-up-front-and-up-to-1-7-billion-in-milestone-based-payments-dcvc-nvidia-nventures-and-magnetic-ventures-co-lead-26m-fundraise

5. https://firstwordpharma.com/story/6735640

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