Vertex Pharmaceuticals Incorporated announced that Vertex and Novartis Pharma AG have amended their collaboration directed at targets in the protein kinase gene family.

The revised agreement provides for a more rapid and earlier stage transfer of the drug candidates discovered by Vertex to Novartis for clinical development. Vertex will continue to be responsible for drug discovery. Novartis is able to pursue research in the kinase field independently of Vertex. Under the amended agreement, Novartis will have the responsibility for preclinical and full clinical development. Novartis will also continue to provide research funding to Vertex until the end of the research term in 2006. Vertex will receive milestone payments based on Novartis' acceptance and clinical advancement of drug development candidates.

"We are pleased to continue our partnership with Vertex," said Dr Joerg Reinhardt, head of Pharma Development, Novartis. "The revised structure of this collaboration will enable earlier compound transfer to Novartis, with resulting control of clinical development of novel medicines by Novartis in critical areas of medical need, including cancer and autoimmune disease."

"This earlier transfer of drug candidates to Novartis will provide greater development capacity to invest in its independently owned drug candidates," said Joshua Boger, CEO of Vertex. "The drug candidates discovered under the collaboration and transferred to Novartis will provide Vertex with an earlier opportunity to achieve preclinical and clinical milestones."

Through 2006, Vertex expects to recognize additional research revenue of approximately $100 million. Under the revised agreement, Vertex will nominate preclinical drug candidates for acceptance by Novartis. Vertex may receive up to $35 million in license fees and milestones for each preclinical drug candidate accepted by Novartis, assuming successful development and product registration, including $10 million upon the initial acceptance of each preclinical drug candidate. Vertex's entitlement to receive royalties on sales of products that are commercialized as part of the collaboration is unchanged from the earlier agreement. Novartis has exclusive worldwide development, manufacturing and marketing rights for the preclinical drug candidates it accepts from Vertex.