Novartis Bets USD 1.1B on Kate Therapeutics to Seize USD 55B Gene Therapy Opportunity

Novartis has announced the acquisition of Kate Therapeutics, a California-based biotech specialising in gene therapy, in a deal worth up to USD 1.1 billion, including upfront and milestone payments. This move aligns with Novartis’ strategy to expand its pipeline of innovative treatments, focusing on neuromuscular disorders and advancing its expertise in gene therapy.

Founded in 2023 with USD 51 million in series A funding, Kate Therapeutics develops gene therapies for conditions like Duchenne muscular dystrophy and facioscapulohumeral dystrophy. Among its promising candidates is KT430, co-developed with Astellas for X-lined myotubular myopathy. With this acquisition, Novartis also gains access to Kate’s proprietary DELIVER capsid engineering platform, enhancing gene therapy delivery's precision and efficacy.

The acquisition reflects Novartis’ broader ambition to strengthen its pipeline of new modalities, including cell and gene therapies, radioligand therapies, and xRNA assets. At an investor event, the company projected USD 55 billion for xRNA and USD 29 billion for radioligands. Novartis also raised its projected sales CAGR of 5% to 6% through 2028 and highlighted plans for 15 near-term regulatory data submissions by 2026.

This transaction follows Novartis’ recent USD 745 million licensing deal with Ratio Therapeutics, further emphasising its strategy of targeted investments in innovative therapies to sustain growth and mitigate the impact of upcoming patent expirations.