Novartis and Idenix Pursue Interdependent Growth

Novartis has capped a recent dealmaking spree with its most innovative deal yet--a half-acquisition of, half-alliance with, Idenix Pharmaceuticals. The big Swiss company agreed to pay $255 million to acquire a 51% equity stake in the private biotech company.

Novartis AG 's expanded pharmaceutical business development group has been zooming to the top of the activity charts. Just last month, and for the relatively modest price of $225 million (perhaps 30% of projected peak sales), it bought rights to the nearly approved incontinence therapy darifenacin (Enablex) from Pfizer Inc. [See Deal], which had been forced by the FTC to unload the drug in advance of closing the Pharmacia acquisition [See Deal]. The product should provide a modest add-on to a women's health business headlined by tegaserod (Zelnorm) for irritable bowel syndrome.

Novartis also provided the month's only good news for Regeneron Pharmaceuticals Inc. --which saw its share price plunge following...

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